Hong Kong shares retreated further from levels last seen in June 2011, as investors took profits on recent outperformers such as Chinese financials ahead of more China economic data at the end of the week.
The Hang Seng Index closed down 0.1 percent at 23,357 points. The China Enterprises Index of the top Chinese listings in Hong Kong ended down 0.8 percent at 11,907.5. This was both indexes' second-straight loss.
Investors rotated out of recent growth-sensitive sectors that have led the strong start to 2013 such as Chinese financials, railway and resources counters and into some consumer names. Chinese internet giant Tencent Holdings outperformed the broader market with a 3.5 percent jump.
Hong Kong property developers were broader higher after a policy speech by the territory's embattled leader Leung Chun-ying, that included plans to increase land supply to cool the property market. Sun Hung Kai Properties climbed 1.4 percent, but New World Development inched up 0.3 percent.
South Korean shares retreated as tech stocks were pressured by foreign selling and jitters about weakening smartphone demand.
The Korea Composite Stock Price Index fell 0.3 percent to close at 1,977.45 points, the lowest close in more than a month.
Tech giant Samsung Electronics closed down 1.3 percent. On Tuesday, it lost 2.6 percent. LG Display was down 1.6 percent after shedding 3.5 percent on Tuesday.
Daewoo Shipbuilding & Marine Engineering rose as much as 3.3 percent after it confirmed late on Tuesday it had submitted a bid for a project in the United Arab Emirates.
Being Asia's sole out performer, Australian shares advanced 0.5 percent, led by banks and defensives after Wall Street posted modest gains on the retail sales data.