Oil saw losses - trading at near $93 a barrel - amid expectations of slow U.S. economic growth, lowering the country’s demand for crude.

Japan's Nikkei 225 index slid 2.1 percent to 9,642.86 and Hong Kong's Hang Seng fell 1.9 percent to 21,995.75. The Republic of Korea's benchmark Kospi index tumbled 2.7 percent to 2,064.35. Stock markets in Australia, Taiwan, India, Singapore, the Philippines and Indonesia also dropped.

“There seems to be a lot of fear in the market, a lot of panic," said Jackson Wong, vice president at Tanrich Securities in Hong Kong, citing worries that the terms of a deal signed by President Barack Obama on Tuesday to avert a U.S. default may worsen an already slowing economy.

China's Shanghai Composite Index barely bucked the trend, gaining 0.1 percent to 2,681.68.

The declines in Asia followed a sharp drop on Wall Street on Tuesday due to a series of weak economic reports and poor results from several big companies.

AP