Asia markets were broadly lower on Tuesday at the open, likely taking cues from European equities, which slid Monday on renewed Brexit concerns.

In Japan, the Nikkei 225 dropped 0.85 percent in early trade; across the Korean Strait, the Kospi slid 0.28 percent. Australia's benchmark ASX 200 was down some 0.54 percent, with the heavily-weighted financials sub-index weighing, down some 0.76 percent.

Major Australian banks were under pressure, with shares of Westpac down some 1.35 percent. Analysts have previously told CNBC the ongoing political uncertainty in Australia was weighing on the future of the big banks.

European stocks finished lower on Monday, with the UK's benchmark FTSE 100 off 0.8 percent. Markets in the US were closed Monday for the Independence Day public holiday.

In the UK, the ramifications of its vote to quit the European Union (EU) continued.

Nigel Farage, leader of the U.K. Independence party and a key Brexit campaigner, announced he was standing down, saying his "political ambition" had been achieved with the Brexit vote.

His departure came after another key Brexit campaigner, Boris Johnson, ruled himself out of the running to become the UK's next prime minister. Incumbent David Cameron, a remain campaigner, said after the Brexit referendum that he would step down by October.

Uncertainty over Britain's future, following the Brexit vote, saw Markit's construction Purchasing Managers' Index (PMI) for the UK drop to 46.0 in June, the lowest level in seven years.

The International Monetary Fund chief, Christine Lagarde, told a French newspaper on Monday, meanwhile, that exiting the EU could cut Britain's gross domestic product by between 1.5 and 4.5 percentage points by 2019.

And ratings agency S&P Global Ratings said both the euro zone and the UK's economic growth would take a knock as a result of the vote, with the agency warning that the UK would barely escape a "full-fledged recession caused by Brexit."

The ongoing uncertainty in the UK sent the British pound lower, with Cable trading at USD 1.3265 as of 8:22 a.m. HK/SIN; this was compared to levels around USD 1.3284 on Monday afternoon Asia time.

In the wider currency market, the Japanese yen, considered a haven asset, strengthened against the dollar, trading at 102.26 in early trade on Tuesday, after weakening as much as 103.39 on Friday.

The dollar was a touch lower against a basket of currencies, trading at 95.577, compared to its last close at 95.649.

Down Under, the Australian dollar traded at the USD 0.75 handle, around USD 0.7521 as of 8:26 a.m. HK/SIN; the Aussie dropped to levels near USD 0.7438 on Monday amid the uncertainty surrounding the country's election outcome.

Investors will continue to monitor the apparent political deadlock in Australia, after a federal election at the weekend failed to produce a clear winner. Continued political and economic uncertainty could see the country move closer to losing its vaunted triple-A credit rating.

The Aussie will also be in focus today as the Reserve Bank of Australia is set to hold its monetary policy meeting; most analysts do not expect a rate cut from the central bank today.

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First Published:Jul 5, 2016 7:57 AM IST