Fairfax Media has reported that Australian embassies were being utilized by U.S. to spy Asian nations through a spy program dubbed as "Stateroom."

China and other Asian nations expressed their disappointment and demanded explanation from the U.S.

"China is extremely concerned about this report and demands that the U.S. offers a clarification and explanation. We also demand that foreign embassies in China and their staff respect the Vienna Convention ... and other international treaties and not get involved in any activities which do not accord with their status or post and harm China's security and interests," Chinese Foreign Ministry Spokesman Hua Chunying said during a press conference.

"We hope and expect that Australia can work hard with China in this regard," she added.

Jakarta had also expressed its "strong protest" against the alleged spy program being conducted through Australian embassies.

In a statement obtained by The Associated Press, Indonesia's Foreign Minister Marty Natalegawa said his government "cannot accept and strongly protests the news of the existence of wiretapping facilities at the U.S. Embassy in Jakarta."

"It should be emphasized that if confirmed, such action is not only a breach of security, but also a serious breach of diplomatic norms and ethics, and certainly not in tune with the spirit of friendly relations between nations," Natalegawa said in a statement.

Malaysian opposition party wrote a statement calling for its government to protest against the American and Australian embassies.

Australia seemed to have found a "friend" with Thailand's national Security Council Sec. Gen. Lt. Gen Paradorn Pattanathabutr putting all the blame to the U.S.

"When it comes to technology and mechanics, the U.S. is more resourceful and more advanced than Australia. So I can say that it is not true that the Australian embassy will be used as a communications hub for spying," Pattanathabutr said.

However, top Australian Intelligence Expert Des Ball admitted to The Associated Press that he had seen hidden antennas installed in the premises of the Australian embassies pinpointed thru the Fairfax report.

He said an embassy being used to spy across other nations was not an isolated case for Australia. The practice was common for all other countries.

"We use embassies to pick up stuff that we can't pick up from ground stations here in Australia - and lots of countries do that."

Prime Minister Tony Abbott said his government did not break any laws.

"Every Australian governmental agency, every Australian official, at home and abroad, operates in accordance with the law. And that's the assurance that I can give people."