Asian equity markets were mixed on Wednesday with Japan leading losses on the back of a slightly stronger currency while Chinese shares rallied on news of financial reforms.
Caution ahead of Friday's closely-anticipated nonfarm payrolls report also weighed on sentiment. Reuters economists are eyeing an increase of 180,000 jobs for November, down from October's 204,000 figure.
Thursday's European Central Bank (ECB) meeting is in focus, with analysts awaiting the central bank's economic forecasts. If the ECB indicates inflation will remain below its target into 2015, it may mean new liquidity measures next year.
(Read more: World growth set to rise in 2014: Credit Suisse)
Nikkei skids 2.2%
Investors used the opportunity to book profits on large-cap stocks that enjoyed a stellar rally last week. Panasonic and Sony eased 3 percent each while robotics maker Fanuc and Nintendo tumbled 2 percent each.
Shanghai jumps 1.6%
The Shanghai Composite rose to its highest levels since mid-September on news that financial liberalization reforms in the Shanghai free trade zone (FTZ) will be implemented within three months. The People's Bank of China (PBOC) Shanghai chief, Zhang Xin, said the policies will serve as models for other free-trade zones in Chinese regions.
Stocks involved in the Shanghai FTZ soared with Shanghai Material Trading, Shanghai International Port and CTS International Logistics rising by the daily limit of 10 percent.
(Read more: We're reassured by China reforms: World Bank)
Property stocks also rallied with Shanghai Shimao leading gains by 3.6 percent on hopes for land reforms outlined in the Third Plenum.
Kospi 1% lower
South Korean shares tracked global weakness to hit a near three-week low. Data showing the nation's foreign reserves rose to a record high for a fifth consecutive month in November was unable to boost sentiment.
Sydney up 0.3%
Australia's benchmark S&P ASX 200 reversed gains to move off a seven-week low despite third-quarter real gross-domestic-product (GDP) missing estimates. The disappointing data saw the Australian dollar hit a new three-month low against the greenback.
Shopping mall operator Westfield Group surged over 4 percent after announcing that it plans to combine its Australian and New Zealand business with Westfield Retail Trust.
Electronics retailer Dick Smith rose 3.6 percent at its debut after raising $315 million in its initial public offering.
In India, stocks fell 0.6 percent to around 20,729 points.
— By CNBC.com's Nyshka Chandran. Follow her on Twitter @NyshkaCNBC