Asian markets remained stuck in negative territory on Wednesday, not getting much impetus from China's official purchasing managers' index (PMI) coming in largely as expected.

The Nikkei 225 shed 0.59 percent, likely weighed by the yen taking a leg higher. The dollar fetched 110.74 yen at 9:36 a.m. SIN/HK, with the dollar-yen currency pair recovering from lows around 110.42 earlier in the session, but still down from levels over 111 on Tuesday.

Australia's gross domestic product (GDP) came in well above expectations, rising 3.1 percent on-year in the first quarter, compared with a Reuters poll forecast for 2.8 percent growth.

That sent the Australian dollar surging to as high as USD 0.7293 from around USD 0.7230 before the data.

Australia's stocks trimmed losses slightly, with the S&P/ASX 200 off 1.12 percent after being down as much as 1.34 percent earlier. Most sub-indexes remained in the red.

The heavily weighted financial sub-index dropped 1.25 percent, while the energy sector fell 1.54 percent.

Shanghai Composite was down 0.18 percent after jumping 3.32 percent on Tuesday in the wake of a Goldman Sachs report released Tuesday that raised the probability of A-share inclusion in the MSCI indexes to 70 percent from 50 percent previously. The MSCI will announce the results of its Annual Market Classification Review on June 15, which may see the A-share market included in the index.

The Shenzhen Composite added 0.39 percent after climbing 4.09 percent Tuesday. Hong Kong's Hang Seng Index was flat.

Some have doubts that a "yes" from MSCI will spur a surge of funds into China's markets.

"A-shares would probably be dripped into the MSCI Emerging Markets Index in small tranches," David Rees, senior markets economist at Capital Economics, said in a note Tuesday.

"What's more, while some investors who track indices such as the MSCI Emerging Markets Index would automatically enter Chinese markets, there might not be a flood of speculative purchasers," he added, noting that economic growth on the mainland is unlikely to return to its previous "stellar" rates and that credit concerns remain a dark cloud.

In South Korea, the Kospi edged down 0.03 percent, likely getting support from a 2.40 percent gain in heavily weighted Samsung Electronics.

Markets didn't get much impetus in either direction from China's official PMI for May coming in at 50.1, steady with April's level and a tick above a Reuters poll forecast for 50.0. Levels above 50 indicate expansion, while levels below indicate contraction.

The official non-manufacturing PMI, which measures services, slipped to 53.1in May from April's 53.5. The services sector now accounts for more than half of China's GDP.

The private Caixin China PMI survey will be released later.

Energy shares around the region lost ground after oil prices failed to hold levels above USD 50 a barrel. In Australia, Woodside fell 1.53 percent, while Japan's Inpex fell 0.99 percent

WTI futures were down 0.26 percent at USD 48.97 at 9:12 SIN/HK, after settling down 0.47 percent Tuesday. Brent was off 0.48 percent at USD 49.65.

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First Published:Jun 1, 2016 7:47 AM IST