Nikkei drops 0.7%
A weaker yen trading at its lowest level since July 2007 failed to deliver gains to Japan's Nikkei 225 index, which erased gains to slip into the red in the trading afternoon session.
Index heavyweights led the bourse lower; Fast Retailing and Softbank sold off 2 and 1 percent each, while Fanuc sagged 1 percent. Meanwhile, Laox struggled after it said it will raise up to about $255 million by issuing new shares. Shares of the electronics retailer tanked nearly 20 percent, a tick higher than its lowest level since January 29 of 251 yen.
However, a softer currency trading above 121 lifted some exporters; Nikon rallied 2.7 percent, while Honda and Canon gained 1 and 0.3 percent each. Toshiba and Sony, meanwhile, shed 0.2 and 1.2 percent each.
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Australia's S&P ASX 200 index threw away early gains to finish near the flatline, a day after suffering its biggest one-day drop in two months.
A nearly 1 percent rally in the shares of Westpac helped to propel the bourse, while National Australia Bank, Commonwealth Bank of Australia and Australia & New Zealand Banking made gains between 0.2 and 0.4 percent.
But, a dismal resources sector, hurt by falling iron ore prices, limited advances. Fortescue Metals slumped 5.6 percent, while junior miners like BC Iron and Atlas Iron lost 7.4 and 6.3 percent, respectively.
Meanwhile, the Australian dollar sank to a near one-month low of $0.7650 to the dollar following lackluster Chinese producer price data.
Kospi slips 0.4%
South Korea's Kospi index closed lower on the back of steep falls among tech players like Samsung SDI, down 5.1 percent, and SK Hynix, which lost 2.1 percent.
Asiana Airlines dropped 6.1 percent on news that its parent company, Kumho Asiana Group, is taking over intercity bus transportation unit Kumho Buslines.
Meanwhile, the won fell to its weakest level against the dollar since August 2013. The currency was last quoted at 1,121 to the dollar.
— CNBC's Evelyn Cheng contributed to this market report