Wall Street rally falters, causing Asia-Pacific markets to slip, with Japan's trade data in the spotlight.

• In July, Japan's exports increased by 10.3% year over year, while imports rose by 16.6%, exceeding expectations of a 11.4% increase in exports and a 14.9% increase in imports.
• The Bank of Japan's decision to raise interest rates at the end of July led to a dramatic strengthening of the yen, marking the last month of recorded trade data before the move.

The S&P500 and Nasdaq Composite ended their eight-day winning streak on Wednesday, causing a decline in Asia-Pacific markets.

If the S&P had maintained its gains on Tuesday, it would have been the longest winning streak for the broad index since 2004.

In July, Japan's trade data showed exports increasing by 10.3% year over year and imports rising by 16.6% in the same period. Despite this, economists surveyed by Reuters predicted that exports would increase by 11.4%, while imports were expected to rise by 14.9%.

Despite lower-than-expected exports and higher-than-expected imports, Japan's trade deficit increased to 621.84 billion yen ($4.28 billion), exceeding the anticipated 330.7 billion yen.

The Bank of Japan's decision to raise interest rates at the end of July will result in the strengthening of the yen.

Japanese exporters and trading houses, which are heavyweights on the Nikkei 225, typically benefit from a weaker yen, contributing to the index's record highs.

After the data release, Japan's stock market slipped by 0.75%, while the broad-based Topix index fell by 0.54%.

The small-cap Kosdaq fell by 0.66%, while South Korea's Kospi decreased by only 0.18%.

Australia's S&P/ASX 200 also fell 0.28%.

The HSI's last close of 17,511.08 was higher than Hong Kong's futures at 17,360.

—CNBC's Alex Harring and Hakyung Kim contributed to this report.