Investors watched nervously as jubilant Democrats seized power in the US House of Representatives for the first time since 1994 and edged closer to taking the Senate, pushing European and Asian equities lower and weighing also on the dollar.

European indices eased off fresh five-year highs struck the previous day, while Japanese shares tumbled by more than one percent, as investors also feared that a split in power in Washington would create legislative gridlock.

The DJ Euro Stoxx 50 index of top eurozone shares lost 0.41 percent to 4,055.98 points.

The US dollar meanwhile staged a slight retreat against the euro and the yen.

However, oil market analysts dampened talk that the vote would have an immediate impact on US foreign policy in the oil-rich Middle East.

In Asia on Wednesday, Tokyo's benchmark Nikkei-225 shares index lost 1.08 percent to close at 16,215.74 points.

A Democratic majority in both houses would have some effect on the Tokyo market but such an outcome has already been priced in, said Hiroyuki Nakai, chief strategist at Tokai Tokyo Research Center.