Remarks from New York Fed President William Dudley also weighed on sentiment. Dudley was optimistic on the economic recovery, which is usually taken as a sign that the U.S. central bank could scale back its bond-buying program soon. However, he also added that stimulus would remain in place for a considerable amount of time.
(Read more: S&P 500 is 75% overvalued, says fund manager)
"That is market double speak at its best; it is open ended and easily interpreted as either positive for QE or negative for QE, yet gives no signs as to when and how the program will be unwound or what size the Fed is happy to close at," said Evan Lucas, market strategist at IG
Nikkei slips 0.2%
Japanese shares retreated further from the previous day's six-month high as financials fell on profit-taking. Sumitomo Mitsui Financial, Shinsei and Resona eased over 1 percent each.
A stronger currency also hurt some exporters after dollar-yen fell below the 100 handle. Construction equipment maker Komatsu fell 2.5 percent while consumer electronics giant Sharp eased 1.7 percent.
Details of a new government-led stimulus package were unable to lift sentiment. Economics minister Akira Amari announced that spending for the package will likely be around $50 billion and will be compiled early next month.
Kospi up 1%
South Korean shares extended their winning streak into a fourth straight session, closing at a three-week high thanks to renewed foreign buying of large caps.
Samsung Electronics added 1 percent while while Hyundai Motor added nearly 2 percent and Kia Motors ended 2.6 percent higher.