But Japanese shares erased losses after the world’s third-largest economy posted surprisingly strong annualised 1.7 per cent growth during the January-March quarter.
MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.8 per cent.
Japanese stocks ended the day flat on Wednesday after the yen see-sawed against the U.S. dollar, rising and falling in strength as investors digested Japan's stronger-than-expected GDP data and U.S. inflation.
The Nikkei share average edged down 0.05 percent to 16,644.69.
The yen gained on the dollar early in the morning session after expectations for further stimulus were hit by data showing Japan's economy expanded at the fastest pace in a year in the first quarter, rebounding from the previous quarter's contraction and beating median market forecasts.
China's benchmark stock index closed at the lowest level in 2-1/2 months on Wednesday, after comments from Federal Reserve officials rekindled prospects of a U.S. interest rate rise as early as June.
The Shanghai Composite Index lost 1.3 percent, to 2,807.51 points, the lowest closing since March 1. The blue-chip CSI300 index fell 0.6 percent, to 3,068.04.
Sentiment in China had already been weak in recent months amid concerns that signs of recovery in its economy may be short-lived and worries that policymakers are growing more cautious about providing additional stimulus as bad debts mount.
Hong Kong stocks tumbled on Wednesday, with sentiment hurt by weakness on Wall Street, following comments from Federal Reserve officials that rekindled prospects of a U.S. interest rate rise as soon as June.
The Hang Seng index fell 1.5 percent, to 19,826.41, while the China Enterprises Index also lost 1.5 percent, to 8,301.01 points.
Sentiment in Hong Kong had already been weak in recent weeks, due to concerns that signs of a recovery in China's economy were fading.
Indeed, a BofA Merrill Lynch Global Research report showed that investors' Chinese growth expectations have fallen sharply in May, with 50 percent now expecting a weaker economy, compared with only 22 percent in April.
Reference: Reuters, Business Line
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