Asia stocks down for third straight session on US losses, China data

Asian equities extended losses into a third session on Wednesday following a selloff on Wall Street overnight and steady Chinese inflation data.

Consumer prices in the mainland rose an annual 2.3 percent last month, versus estimates for a 2.4 percent rise and softer than May's 2.5 percent rise. Producer prices meanwhile, declined an annual 1.1 percent, falling for the 27th straight month.

"While inflation is well controlled in 2014, it has much less salience for macro policy than in years past. Inflation is no longer the binding constraint on credit growth; instead, financial stability risk is," said Bill Adams, senior international economist for PNC Financial Services.

Wall Street shares sank overnight with both the Dow and S&P 500 down 0.7 percent while the Nasdaq fell by over 1 percent as investors braced for quarterly earnings.

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China shares slump

Mainland stocks widened their losses to over 1 percent, falling to their lowest levels since June 27, while the yuan rose to a three-month high against the dollar as investors monitored the U.S.-China Strategic and Economic Dialogue in Beijing.

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Financials weighed on the benchmark Shanghai Composite. Industrial and Commercial Bank of China, Bank of Communications and Merchants Bank shed more than 1 percent each.

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Hong Kong's benchmark Hang Seng Index fell to a one-week low, down 1.5 percent.

Nikkei flat

Japanese shares finished at a more than one-week low on the back of a stronger yen. The currency rose against the dollar for the third session to hit a one-week high of 101.42, adding pressure on currency-sensitive exporters.

Mitsubishi Motors, Sony and Panasonic eased over 1 percent each. Brokerages also weighed with a 2.5 percent loss in Nomura and a 1.5 percent loss in Daiwa Securities.

But All Nippon Airways bucked the trend, rising nearly 2 percent, after CLSA upgraded its rating on the stock to 'buy' from 'outperform.'

ASX 1% lower

Losses amid resources led Australia's benchmark S&P ASX 200 index to end at a one-week low.

Fortescue Metals eased nearly 2 percent, Atlas Iron skidded 3 percent each and BHP Billiton eased 1 percent despite copper prices hovering near a five-month peak.

That overshadowed data showing consumer sentiment improved in July from the previous month, according to the Melbourne Institute and Westpac Bank showed.

Kospi eases 0.3%

South Korean shares also eased to a one-week trough, suffering their worst day in almost two weeks, as foreign investors snapped their nine-day buying streak.

Among blue-chips, steelmaker Posco shed 1.5 percent while LG Electronics sank nearly 5 percent.

Sensex slips 0.1%

Indian shares extended losses after skidding 2 percent on Tuesday on profit-taking and worries ahead of Thursday's federal budget presentation.

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Indonesian markets were shut as voting began to elect the country's next president.