Stocks in early trading in Asia slumped on Wednesday after a downward revision of US economic growth in the third quarter and rising yields on Spanish bonds.

The US economy grew at a two percent annual rate, 0.5 percent less than its initial estimate, the Commerce Department said. Meanwhile, higher borrowing costs in Spain triggered renewed worries about the eurozone's continuing debt crisis.

Despite a new Spanish government coming to power this week, investors still remain doubtful about whether the country will be able to get its budget in order. Investors particularly fear that Spain could become the next eurozone country to require financial support from its neighbours.

Spain's 10-year bond stands at 6.58 percent just 0.42 percent shy of the 7 percent that forced Greece to ask for relief from its lenders.