Speaking about recent slumps in Chinese equity markets, Fan Cheuk Wan, CIO, Asia Pacific at Credit Suisse Private Banking told CNBC's Cash Flow, "The market has priced in imminent financial crisis in China with current valuations reflecting a big equity risk premium. In my opinion, market has already priced in very bearish growth expectations at the National People's Congress which will kick-start next Wednesday. Investors will watch out for more concrete policy signals regarding structural reform progress including the psychical reform which will address shadow banking and local government debt problem."
Australia's benchmark S&P ASX 200 bounced between gains and losses in rangebound trade on Wednesday but eventually managed to finish slightly higher.
Earnings season dominated the day in Sydney. AGL Energy eased losses from 1 percent to modestly fall 0.2 percent, on news that its first-half profit fell 11.4 percent after a record warm winter reduced demand for energy.
Lend Lease tumbled 4 percent after a 16 percent decline in first-half earnings. Shopping mall owner Westfield lost 3 percent, following a modest decline in annual profit after sales of less profitable assets shrunk its global portfolio.
Gains in banking stocks capped losses; National Australian Bank rallied over 1 percent while Westpac and Commonwealth Bank of Australia (CBA) rose 0.5 percent.
(Read more: Investor confidence in US, Europe spikes: Report)
Korea adds 0.3%
South Korean shares shook off early losses to enter a two-day winning streak on Wednesday.
Asiana Airlines rose steadily to gain 0.7 percent, despite news of a fine of $500,000 by U.S. regulators on Tuesday for failing to assist the families of passengers on a flight that crashed in San Francisco in July last year.
Automakers further lifted the bourse; Hyundai Motor and Kia Motors rallied over 1 percent each.
Meanwhile, the korean won posted its biggest daily gain in two weeks, as dollar unwinding by exporters prompted short-covering in the currency. It traded at 1,065, an 0.8 percent addition, against the greenback
(Read more: Once hardy Thai economy feeling the strain)
Thailand shares pared early gains to finish near the unchanged territory on Wednesday, amid continued political unrest. Investors may also be reacting to Tuesday's announcement of the latest trade data which saw the country's trade deficit balloon to $2.52 billion.
Thai Airways traded unchanged, after reporting a third successive quarterly profit loss. Advanced Info Service lost early gains to trade flat, following calls by anti-government protesters to boycott businesses linked to Prime Minister Yingluck Shinawatra.
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