Sydney falls 0.3%
Australia's benchmark moved off an earlier fresh five-year high above the 5,380 mark, snapping six straight session of gains thanks to the sudden declines in Japanese and Chinese shares.
Third-quarter core consumer prices came in stronger-than-expected and that saw the Australian dollar jump to a four-and-a-half-month high of $0.9758 against the greenback. Traders say the high inflation figure will reduce any chances of further interest rate cuts from the Reserve Bank of Australia (RBA).
Gold miners supported the index with Evolution Mining 9.4 percent higher and Kingsgate Consolidated up 5.3 percent as bullion prices approached a four-week high.
(Read more: Dollar pain may spell further gains for gold)
Insurance firms were lower as bushfires continue to rage in New South Wales and outside of Sydney. QBE led losses by 2.3 percent while Suncorp Metway fell 0.4 percent.
Kospi slips 0.8%
South Korean stocks erased gains after hitting a fresh two-year high above the 2,060 mark while the won hit a new nine-month high.
(Read more: Why they're loving tapering of taper talk in Seoul)
Daelim Industrial slumped 5 percent after announcing a 9.7 percent decline in July-September operating profit.
— By CNBC.com's Nyshka Chandran. Follow her on Twitter