Asia-Pacific markets fall as Wall Street rally falters; Japan trade swings to deficit

Asia-Pacific markets fell on Wednesday after both the S&P500 and Nasdaq Composite snapped an eight-day winning streak overnight.

The S&P 500 slid 0.2%, while the Nasdaq Composite shed 0.33%. The Dow Jones Industrial Average dropped 0.15%. If the S&P had gained on Tuesday, it would have been the broad index's longest winning streak since 2004.

In Asia, Japan's trade data for July saw exports rising 10.3% year on year and imports up 16.6%. Economists polled by Reuters had forecast that exports would rise 11.4%, while imports growth was pegged at 14.9%.

With exports coming in lower than expected and imports rising more than expected, Japan's trade deficit widened to 621.84 billion yen ($4.28 billion), a larger figure than the 330.7 billion yen expected by economists.

July will be the last month of trade data recorded before the Bank of Japan's move to raise interest rates at the end of July, which caused the yen to strengthen dramatically.

Typically, a weaker yen benefits Japanese exporters and trading houses, heavyweights on the Nikkei 225 and whose rise has been instrumental in lifting the index to its record highs.

Japan's Nikkei 225 slipped 0.88% after the data release, while the broad based Topix fell 0.6%.

Hong Kong's Hang Seng index tumbled 1.38%, leading losses in Asia, while mainland China's CSI 300 was 0.57% lower.

Technology and consumer cyclical stocks dragged the HSI, with e-commerce giant JD.com leading declines, down 11.4%. The losses come after U.S. retail giant Walmart told CNBC it was looking to sell its stake in JD.com. The stake could reportedly be worth $3.74 billion.

South Korea's Kospi inched down 0.23%, and the small-cap Kosdaq was 1.13% lower.

Australia's S&P/ASX 200 also fell 0.48%.