Hong Kong shares dropped more than 2% after Federal Reserve Chairman Jerome Powell cautioned that interest rates may need to be higher than expected, fueling concerns of a potentially larger hike at the next policy meeting.
In Hong Kong, the Hang Seng index lost 2.35% in its final hour of trade, led by consumer cyclicals, healthcare, and basic materials stocks, leading losses in the region. Mainland China's Shanghai Composite dropped fractionally to close at 3,283.25 and the Shenzhen Component traded down nearly 0.1% lower to end its session at 11,598.29.
In Australia, the S&P/ASX 200 shed 0.77% to 7,307.8 as investors digested Reserve Bank of Australia's governor Philip Lowe's speech after the bank's 25 basis point hike on Tuesday.
South Korea's Kospi fell 1.28% to 2,431.91. Japan's Nikkei 225's added 0.48% to close at 28,444.19 and the Topix inched up 0.3% to close at 2,051.21.
Overnight in the U.S., major stock indexes fell following Powell's comments that should the strength of the latest economic data warrant a faster tightening, the Fed would be "prepared to increase the pace of rate hikes."