"Expectations are very low for the upcoming European summit, " said Tim Waterer, senior trader at CMC Markets in Sydney.

WSJ: Asian Markets Fall After Spanish Bank Downgrade

"The market isn't convinced that what we have seen in Cyprus won't have long-term effects on the euro zone, " said Tim Waterer, senior trader at CMC Markets in Sydney.

WSJ: Europe Concerns Weigh on Asian Shares

"The market is not convinced that what we have seen in Cyprus will not have long-term effects on the euro zone, " said Tim Waterer, senior trader at CMC Markets in Sydney.

WSJ: Europe Concerns Weigh on Asian Shares