Asia shares down after two days of gains

Hong Kong - Asian markets mostly fell on Wednesday after two days of healthy gains, while investors also took their lead from Wall Street's retreat from record highs.

The dollar edged higher against the yen as a recent batch of upbeat data boosted confidence in the global economy, while the euro faced selling pressure ahead of an expected easing of monetary policy by the European Central Bank.

Tokyo added 0.22% to 15 067.96 thanks to the weaker yen, but Sydney fell 0.64% to close at 5 444.8 despite better-than-expected first quarter economic growth data, while Shanghai shed 0.66% to 2 024.83.

Hong Kong was 0.60% lower, giving up 139.33 points to close at 23 151.71.

Seoul was closed for a public holiday.

Global markets started the week on the front foot in response to a marked improvement in manufacturing activity in China and the United States.

However, New York dealers took their cash off the table on Tuesday ahead of an ECB policy meeting and Friday's release of US jobs figures for May.

The Dow slipped 0.13% and the S&P 500 dipped 0.04% after both indices closed at records on Monday. The Nasdaq eased 0.07%.

Sydney dipped as investors brushed aside figures showing a better-than-expected 1.1% increase in economic growth in the first three months of 2014, thanks to a sharp pick-up in mining exports.

In currency trades the dollar fetched ¥102.62 compared with ¥102.52 in New York.

The euro bought $1.3611 and ¥139.64 against $1.3627 and ¥139.73 after figures showed eurozone inflation slowed to 0.5% in May.

The news fanned expectations the ECB will unveil another round of monetary easing to fight off deflation when it holds its monthly policy board meeting on Thursday.

Oil prices edged higher. The US benchmark, West Texas Intermediate for delivery in July, gained 50 cents to $103.16 a barrel while Brent North Sea crude for July was up 22c at $109.04.

Gold fetched $1 246.13 an ounce at 10:05 compared with $1 246.83 late on Monday in Europe.

In other markets:

- Taipei was almost unchanged, easing 3.50 points to 9 119.96.

Taiwan Semiconductor Manufacturing Co rose 0.82% to Tw$123.5 while smartphone maker HTC fell 4.33% to Tw$143.5.

- Wellington was flat, edging down 4.77 points to 5 159.35.

Fletcher Building was off 0.89% at NZ$8.93 and Telecom added 0.55% to NZ$2.735.

- Manila closed 0.50% lower at 6 766.57.

Metropolitan Bank and Trust Co was unchanged at 85.65 pesos and Philippine Long Distance Telephone edged up 0.07% to 2 890 pesos.