Japan posted two consecutive days of positive economic data. On Tuesday, the revised third quarter gross domestic product (GDP), the broadest measure of economic health, number showed the economy was not in technical recession as indicated by the preliminary data.
On Wednesday, October core machinery orders, a measure of capital spending in the economy, rose unexpectedly by 10.7 percent on-month, against a Reuters poll of economists that predicted a 1.5 percent decline. Core machinery orders rose 10.3 percent on-year, also beating expectations.
Market reaction, however, was modest as the spillover effect of low commodity prices pushed the Nikkei 225 down 191 points or 0.98 percent at 19,301.
Manufacturing stocks traded lower despite positive economic data. Shares in Hitachi Construction were down 0.16 percent while Komatsu ended near 1 percent low.
Japanese blue chips were mostly down, with shares in Sony and Mitsubishi Electric seeing losses of more than 1 percent each.
Elsewhere, the Nikkei reported that Japan's fiance ministry would ramp up issuance of 40-year government bonds in the next fiscal year to reduce the risk of debt-servicing costs eating into the country's finances.
In South Korea, markets traded flat, with the Kospi up 0.8 points or 0.04 percent at 1,948.
Shares in Lotte Shopping closed 2.89 percent higher after news broke that its parent company, Lotte Group, would consider listing its Japanese confectionery business in the Japan stock market.
South Korean blue chips traded mixed with shares in Samsung Electronics finishing near flat.