Asian shares slid deeper into the red in a topsy-turvy trading session on Tuesday, with resources names leading losses after latest trade figures out of China rekindled concerns over demand from the world's second-biggest economy.

Commodity currencies also took a hit, with the Australian dollar (Exchange: USDAUD=) and the New Zealand dollar (Exchange: USDNZD=) furthering their declines after the data release.

China's dollar-denominated exports fell 3.7 percent in September from a year earlier, while imports plunged 20.4 percent to chalk up their eleventh consecutive month of decline, official data showed on Tuesday.

That produced a trade surplus of $60.34 billion for the month, beating market expectations of $47.6 billion.

"Given the slight recovery in commodity prices, the decline in imports suggests sluggish domestic demand – in particular, investment demand," said Yang Zhao, China economist at Nomura.

Mainland markets choppy

China's share markets mostly surrendered Monday's gains, with the Shanghai Composite index last seen 0.3 percent lower.

Large-caps such as PetroChina (Shanghai Stock Exchange: 1857-SZ) made losses of 1.3 percent, while Bank of China (Shanghai Stock Exchange: 1988-SZ) and China Construction Bank (Shanghai Stock Exchange: 1939-SZ) sagged 0.5 and 0.4 percent respectively.

The benchmark CSI300 Index edged down 0.4 percent, while small-caps continued to outperform with the Shenzhen Composite erasing earlier losses to tick up 0.3 percent.

In the previous session, the Shanghai bourse rocketed up 3.3 percent to finish at its highest level since August 24, thanks to a report by the China Securities Journal that quoted a senior central banker saying that the country's stock market correction is "almost over."

Read More China slowdown weighs on Hong Kong luxury rents

Meanwhile, investor sentiment also got a boost from news that the central bank expanded a pilot scheme that allows banks to borrow money using high quality credit assets as collateral.

"Under the policy, the Chinese central bank will allow more commercial banks to use loans as collateral to borrow cheaply from the [People's Bank of China]. These banks are then supposed to increase lending to the private sector, especially to the small and medium enterprises, where an increase in bad loans has made Chinese banks more cautious with extending loans to businesses deemed risky," IG market strategist Bernard Aw explained.

Meanwhile, Hong Kong's Hang Seng Index turned negative yet again in late-morning trade, down 0.6 percent.

Nikkei sags 1%

Japan's benchmark Nikkei 225 (Nihon Kenzai Shinbun: .N225) index was the victim of profit-taking after an extended weekend, with oil-related counters among the hardest-hit after a more than 5 percent tumble in crude oil prices overnight.

Inpex (Tokyo Stock Exchange: 1605.T-JP) plummeted nearly 5 percent, while JX Holdings (Tokyo Stock Exchange: 5020.T-JP) and Idemitsu Kosan (Tokyo Stock Exchange: 5019.T-JP) lost nearly 2 percent each.

Index heavyweights were also among those weighing on the Tokyo bourse; Fast Retailing (Tokyo Stock Exchange: 9983.T-JP) declined 3.6 percent, while SoftBank (Tokyo Stock Exchange: 9984.T-JP) and Fanuc (Tokyo Stock Exchange: 6954.T-JP) fell 2.6 and 3.2 percent respectively.

Shares of Rakuten (Tokyo Stock Exchange: 4755.T-JP) dropped 2.8 percent after the e-commerce giant said it is investing in Madrid-based taxi-booking app Cabify.

By contrast, Sharp (Tokyo Stock Exchange: 6753.T-JP) leaped nearly 9 percent following news that government-backed fund Innovation Network Corporation of Japan (INCJ) is considering an investment in the troubled Japanese electronics maker.

Meanwhile, the Bank of Japan (BOJ) released minutes from its recent policy meeting where it maintained its pledge to increase base money at an annual pace of 80 trillion yen ($666 billion).

In an interview with CNBC after the BOJ meeting, Governor Haruhiko Kuroda said Japan's inflation rate was in line with the central bank's expectations , indicating that a fresh round of quantitative easing (QE) in the near term was unlikely. Kuroda was speaking on the sidelines of an International Monetary Fund (IMF) meeting in Peru.

ASX drops 0.6%

Australia's S&P ASX 200 (ASX: .AXJO) index looked set to post its second straight session of losses, with the key resources sector coming under pressure.

Santos (: ) and Woodside Petroleum (ASX: WPL-AU) retreated 5.7 and 1.3 percent respectively. Miners weren't spared, with BHP Billiton (London Stock Exchange: BLT-GB) and Rio Tinto (London Stock Exchange: RIO-GB) receding about 2 percent each.

Telecommunications giant Telstra (ASX: TLS-AU), which held an annual general meeting in Melbourne, fell 1.1 percent.

The latest National Australia Bank (ASX: NAB-AU) survey which showed a recovery in business confidence for September proved to be little comfort for investors.

The main business confidence index jumped to 5 points last month, from 1 point in August which was the index's lowest level since mid-2013.

The Sydney bourse

In other news, the Reserve Bank of Australia Deputy Governor Philip Lowe said Australia needed to avoid allowing uncertainty about the future to "mutate into chronic pessimism," Reuters reported. Lowe added that monetary policy alone could not boost living standards.

Read More A hazy report card for Q3? Singapore is about to enter a technical recession

Kospi slips 0.4%

South Korea's Kospi index fell back below the flatline

Oil-related counters tracked the region-wide sell-off, with SK Innovation (Korea Stock Exchange: 9677-KR) plunging 2.6 percent. However, beneficiaries of lower oil prices such as Korean Air Lines (Korea Stock Exchange: 349-KR) and Asiana Airlines (Korea Stock Exchange: 2056-KR) took off 0.8 and 1.8 percent higher, respectively.

South Korea saw foreign net outflows from both its stock and bond markets for the fourth month in a row in September, according to official data on Tuesday, as offshore investors adjusted their portfolios ahead of an expected U.S. rate hike.

Foreign investors lowered their bond holdings by a net 937.0 billion won ($820.27 million) in September, according to the Financial Supervisory Service, up sharply from 216.0 billion won in August.

Overnight, major U.S. averages advanced slightly as gains in utility counters offset a retreat in energy plays and nerves surrounding the release of third-quarter corporate earnings results.

— CNBC's Ansuya Harjani contributed to this report

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