Asian markets stumbled on Wednesday as relief China had matched its own growth target was soured by poor readings on consumer demand and industrial activity, underlining the need for more policy action by Beijing.

European stock markets were, however, expected to open flat to higher. Financial spreadbetter Capital Spreads predicted Britain's FTSE 100 to open flat on Wednesday, Germany's DAX to gain 29 points, or 0.2 per cent, and France's CAC 40 to rise 16 points, or 0.3 per cent.

The European Central Bank is expected to keep rates unchanged when it meets later on Wednesday. A banking source told Reuters on Tuesday the ECB raised the cap on emergency liquidity assistance that Greek banks can draw from the country's central bank.

Data earlier in the day showed growth in China's colossal economy did slow to a six-year low of 7 per cent in the first quarter, but that was better than many feared after a woeful trade performance in March.

Both retail sales and industrial output missed forecasts, with the latter expanding at the slowest pace since the global financial crisis in 2008.

"It doesn't change our view that China needs to cut either reserve requirements or interest rates every month during the next three to six months to keep the economy from slowing further," said Qi Yifeng, a macro analyst at CEBM Group in Shanghai.

"All other data we see, such as industrial production, exports, power generation etc all look terrible."

Shanghai stocks were volatile, falling more than a percent after the data but recovering subsequently to be marginally positive for the day. The CSI300 index of the largest listed companies in Shanghai and Shenzhen was likewise down initially and later up 0.3 per cent.

Shanghai has been rising for six weeks straight as investors have chosen to focus on the prospect of extra policy stimulus, but looks overdue for some consolidation.

MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.2 per cent, while Japan's Nikkei was all but flat.

The Australian dollar dipped more than a quarter of a US cent to $0.7590 as investors fretted about the health of Chinese demand for the country's resource exports.

Major currencies were little moved, with the dollar up 0.19 per cent against a basket of its peers. The euro held around $1.0634 after bouncing on Tuesday following a soft report on U.S. retail sales.

Against the yen, the dollar snuck back up to 119.61 from a an overnight low of 119.07.

Wall Street had ended Tuesday mostly higher, helped by energy stocks and quarterly earnings reports that topped modest expectations following worries about a strong dollar.

The Dow rose 0.33 per cent and the S&P 500 0.16 per cent, while the Nasdaq fell 0.22 per cent.

After the bell, Intel Corp forecast revenue broadly in line with Wall Street's low expectations and signalled a hefty cut in capital expenditure this year, sending its shares up almost 3 percent.

Crude oil was firmer after a forecast that U.S. shale oil output would record its first monthly decline in more than four years and on tensions in Yemen.

US crude was up 39 cents at $53.68 a barrel, having risen 3.3 percent on Tuesday, while Brent added 50 cents to $58.95 a barrel.

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