Asian equity markets declined on Wednesday following a weak handover from Wall Street and as investors showed little reaction to news of a U.S. budget deal.
Earlier in the session, Senate Democrats and Republicans reached a deal to reduce automatic spending cuts and provide $23 billion in deficit reduction spread over two years. That saw modest gains in U.S. stock futures during Asian trade while yields on the 10-year note were little changed around 2.8 percent.
"As a result [of the deal], U.S. fiscal issues are likely to be less of an issue for investors next year. The short term fiscal easing next year will also further boost US. economic growth. It adds confidence to our view that the U.S. will grow 3 percent next year," said Shane Oliver, head of investment strategy and chief economist at AMP Capital.
(Read more: What the US budget deal means for equity markets)