Asia markets trade lower as China cuts key 5-year lending rate

This is CNBC's live blog covering Asia-Pacific markets.

Asia-Pacific markets fell Tuesday, as investors parsed Chinese central bank's decisions on key lending rates.

The CSI 300 dropped 0.34% as investors assessed the People's Bank of China's decision to cut its five-year loan prime rate by 25 basis points to 3.95%. The one- and five-year LPR remains unchanged at 3.45%.

Hong Kong's Hang Seng index dipped 0.07% in its first hour of trade.

Japan's Nikkei 225 traded around the flatline, hovering near record highs, while South Korea's Kospi shed 1.02%.

In Australia, the S&P/ASX 200 dipped 0.29%.

U.S. markets were closed Monday for the Presidents' Day holiday.

Australia's Star Entertainment fell more than 20% to a record low after the New South Wales state gaming regulator announced that it will launch a second inquiry into its Sydney casino.

The company's shares slid 21.43% to settle at 0.443 cents per share. Its valuation now stands at AUD $1.6 billion ($1.43 billion)

The broader S&P/ASX 200 fell 0.2%.

—Lee Ying Shan

China's central bank has cut the benchmark five-year loan prime rate for the first time since June, while leaving the one-year tenure unchanged.

The Chinese central bank kept its one-year loan prime rate — the peg for most household and corporate loans in China — unchanged at 3.45%. It cut the five-year loan rate — the peg for most mortgages — by 25 basis points to 3.95%, according to a statement Tuesday from the People's Bank of China.

"I think this time the 25 basis point cut, from my perspective, [is] definitely a very positive sign," said William Ma, chief investment officer of Grow Investment Group, adding that the government and regulators are showing that the banks are in good fiscal health.

—Clement Tan, Lee