Asian markets mostly retreated Wednesday, with energy firms hit by sinking oil prices as fresh fears about a planned output cut by major producers was fanned by a report Russia will not take part.

Crude has been in the ascendancy since last month when the Organization of Petroleum Exporting Countries, and later Moscow, agreed to output cuts in a bid to support prices.

But both contracts tumbled more than one percent Tuesday as the Russia-based Interfax news agency said the country's envoy at OPEC, Vladimir Voronkov, had said output cuts are not “an option for us”.

And it extended losses Wednesday in Asia, putting pressure on regional energy firms, while eyes are on the release later in the day of US stockpiles figures.

The report came days after key OPEC member Iraq said it should be exempted from the final deal as it was fighting a war against the Islamic State group.

"They say talk is cheap and OPEC appears to be approaching the limits of its ability to jawbone oil higher without something concrete to put on the table," Jeffrey Halley, senior market analyst at OANDA, said in a note.

Sydney-listed Oil Search sank three percent while CNOOC lost around two percent in Hong Kong and Tokyo's Inpex shed more than one percent.

Broader markets were also well into negative territory, with Hong Kong ending down one percent and Shanghai closing 0.5 percent off.

Sydney tumbled 1.5 percent as a surge in inflation tempered expectations that Australia's central bank will cut interest rates any time soon.

Seoul, Wellington and Manila each fell more than one percent, while Singapore was also sharply lower.

However, Tokyo reversed morning selling to end slightly higher.

In early European trade London fell 0.5 percent, while Frankfurt and Paris each slipped 0.4 percent.

Apple suppliers were mixed despite the US titan announcing a fall in revenue and profits, then issuing a below-par sales outlook for the crucial holiday period.

“Apple’s forward expectations aren’t great and it’s susceptible to more of a pullback,” James Audiss, Sydney-based senior wealth manager at Shaw and Partners, told Bloomberg News.

Seoul-based SK Hynix rallied four percent and Japan Display was up 1.4 percent in Tokyo but Taipei's Hon Hai Precision and TSMC both turned lower.

- Key figures around 0800 GMT -

Tokyo - Nikkei 225: UP 0.2 percent at 17,391.84 (close)

Hong Kong - Hang Seng: DOWN 1.0 percent at 23,325.43 (close)

Shanghai - Composite: DOWN 0.5 percent at 3,116.31 (close)

London - FTSE 100: DOWN 0.5 percent at 6,980.01

Euro/dollar: UP to $1.0909 from $1.0887 Tuesday

Dollar/yen: DOWN to 104.21 yen from 104.22 yen

Pound/dollar: UP to $1.2200 from $1.2186 

Euro/pound: UP to 89.46 pence from 89.34 pence

Oil - West Texas Intermediate: DOWN 60 cents at $49.36 per barrel

Oil - Brent North Sea: DOWN 51 cents at $50.28

New York - Dow: DOWN 0.3 percent at 18,169.27

Source: AFP