Asian shares stumbled to near 2-1/2-month lows on Tuesday and the US dollar pared some of its recent losses as investors worried about the likelihood of a US interest rate increase in coming weeks.

    MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slid 0.5 percent, taking its losses to more than 7 percent so far this month and nearing its lowest levels since March 9. Japan's benchmark Nikkei 225 fell 0.9 percent to close at 16,498.76 as the yen continued to strengthen, hurting exporters. 

    Australia's S&P/ASX 200 slipped 0.4 percent to 5,295.60, while South Korea's Kospi edged down 0.9 percent to 1,937.68. Hong Kong's Hang Seng fell 0.3 percent to 19,749.95 while the Shanghai Composite index slid 0.8 percent to 2,821.14. 

    Meanwhile, the dollar trimmed some of its losses against the yen after skidding nearly 1 percent in the previous session to a low of 109.12. It was last up 0.04 percent at 109.40 yen JPY=, moving back toward Friday's three-week high of 110.59.