Overnight United States charged Chinese telecom firm Huawei with bank fraud and for conspiring to steal trade secrets.
On Tuesday Asian shares faltered prospects for a Sino-U.S. trade deal, Investors were nervously awaiting a fresh round of U.S.-China trade talks with Chinese Vice Premier Liu He meeting U.S. officials on Wednesday and Thursday.
MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.5 percent with Australia's benchmark index down 0.7 percent and South Korea's KOSPI off 0.6 percent.
Prospects for a deal between the economic giants will be tested as the U.S. Justice Department unsealed indictments against China's top telecom equipment maker, Huawei, accusing it of bank and wire fraud to evade Iran sanctions and conspiring to steal trade secrets from T-Mobile US Inc.
U.S. stock futures also lost ground following from a torrid overnight session on Wall Street, with E-Minis for the S&P 500 down 0.5 percent.Overnight on Wall Street, the Dow and S&P 500 each closed down 0.8 percent and the Nasdaq was off more than 1 percent.
Caterpillar plunged more than 9 percent for its worst single-day drop since August 2011 while chipmaker Nvidia slid 13.8 percent.
The downbeat global growth impulse mean investors will look for further confirmation the Fed will pause its rate-hike cycle at a two-day policy meeting ending Wednesday.
Markets will have more catalysts this week with over a 100 of the S&P500 companies reporting results, including Amazon , Apple and Facebook .
Oil remained on a slippery slope ,On Monday crude slip by 2.27% now trading at $52.14 (-0.29%) a barrel
Overnight Brent loss 1.95% , On Tuesday in early Asia trading at $59.94 a barrel.
U.S. gold futures hovered near a seven-month high around $1,303.6 per ounce.
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