Traders had been riding a wave of confidence since Friday's speech by US Federal Reserve Chairman Jerome Powell, which suggested coming interest rate cuts in the world's largest economy.

But the upward flurry appeared to die out on Wall Street on Monday as attention turned to this week's earnings report from AI chip giant Nvidia -- a bellwether for the industry as concerns over a tech bubble mount.

Asian markets notched mostly moderate losses on Tuesday, tracking drops made the previous day in New York and Europe.

Hong Kong's main index recorded one of the more pronounced slides, finishing 1.2 percent lower.

Tokyo, Shanghai, Seoul and Sydney were also down. Taipei was up slightly.

Morning trading in Europe saw declines in London and Frankfurt, while Paris plummeted more than two percent on fears of a French political crisis ahead of a crucial confidence vote next month.

Also weighing on investors' minds was Trump's Monday evening announcement in the United States that he was removing Federal Reserve governor Lisa Cook, citing allegations of false statements on her mortgage agreements.

The highly unusual step -- which will likely face a legal challenge -- comes as worries grow about the independence of the central bank, fuelled by Trump's repeated public demands to Powell to lower interest rates.

The dollar fell following the news, then mostly recovered after Cook issued a statement vowing to continue in her role.

Gold -- widely perceived as a safe storage of wealth -- advanced.

Trump's announcement "shows how increasingly politicised the central bank is becoming", Neil Wilson, UK investor strategist at Saxo Markets, wrote in a note.

"The question for markets right now is about the September meeting but be in no doubt that we are witnessing a regime shift like we have not seen in decades," he added, referring to an upcoming Fed gathering at which officials will make a decision on rates.

Trump also vowed Monday evening to impose "substantial additional tariffs" on shipments from countries that do not cancel digital taxes and regulations, which he said were "designed to harm" US technology.

He added a threat to introduce export restrictions on "highly protected (US) technology and chips", without offering further details.

Eyes are now turning toward a US GDP report on Thursday and a key inflation gauge coming on Friday for clues on how far interest rates might fall -- or not -- in the coming months.

Oil prices crept down on Tuesday, walking back increases made in recent days amid speculation about a peace deal to end the war in Ukraine.

- Key figures at around 0830 GMT -

Tokyo - Nikkei 225: DOWN 1.0 percent at 42,394.40 (close)

Hong Kong - Hang Seng Index: DOWN 1.2 percent at 25,524.92 (close)

Shanghai - Composite: DOWN 0.4 percent at 3,868.38 (close)

London - FTSE 100: DOWN 0.6 percent at 9,263.86

Euro/dollar: DOWN at $1.1617 from $1.1624 on Monday

Pound/dollar: UP at $1.3467 from $1.3460

Dollar/yen: DOWN at 147.56 yen from 147.70 yen

Euro/pound: DOWN at 86.26 pence from 86.35 pence

West Texas Intermediate: DOWN 0.9 percent at $64.19 per barrel

Brent North Sea Crude: DOWN 0.8 percent at $68.25 per barrel

New York - Dow: DOWN 0.8 percent at 45,282.47 (close)

pfc/pbt

NVIDIA

Dow