Hong Kong's Hang Seng index tumbled nearly 2% to a new low for 2023 as Asia-Pacific markets mostly fell on Wednesday.
The index briefly entered bear market territory and closed 1.94% lower at 18,234.27 as China's latest manufacturing purchasing managers index slid for a second-straight month in May to 48.8, a steeper contraction than April's 49.2.
Mainland Chinese markets were also all lower, with the Shanghai Composite falling 0.61% to end at 3,204.56 and the Shenzhen Component down 0.7% to finish at 10,793.85.
In Japan, the Nikkei 225 retreated from its 33-year high and fell 1.41% to close at 30,887.88, while the Topix declined 1.32% to 2,130.63.
Australia's S&P/ASX 200 dropped 1.64% to end its session at 7,091.3 as the country's weighted inflation rate rose more than expected to 6.8%. The reading was higher than the 6.4% expected by economists polled by Reuters.
South Korea's Kospi reversed earlier gains and lost 0.32% to close at 2,577.12 while the Kosdaq advanced 0.64% to 856.94.
Overnight in the U.S., all three major indexes ended mixed as Wall Street considered the likelihood of Congress passing a tentative deal on raising the U.S. debt ceiling amid growing opposition within the GOP.
The Dow Jones Industrial Average lost 0.15% and the Nasdaq Composite gained 0.32%. Meanwhile, the S&P 500 eked out a marginal gain, after trading both above and below the flatline during the session.
— CNBC's Brian Evans and Alex Harring contributed to this report