Asia Pacific markets traded mixed on Wednesday despite an overnight rally on Wall Street as investors sifted through fresh uncertainties surrounding the U.K.'s withdrawal from the European Union.
Japan's Nikkei 225 fell 112.54 points, or 0.55 percent, to 20,442.75 while the Topix index slipped 4.95 points, or 0.32 percent, to 1,537.77. In South Korea, the Kospi rose 8.92 points, or 0.43 percent, to 2,106.1.
Greater China markets were mixed, with Hong Kong's Hang Seng Index erasing early losses to rise 0.13 percent in late-afternoon trade. The Shanghai composite was almost flat, while the Shenzhen composite and Shenzhen component index ended fractionally lower.
In Australia, the benchmark ASX 200 added 20.6 points, or 0.35 percent, to 5,835.2 as the heavily-weighted financial subindex added 0.61 percent.
Global markets received a boost on Tuesday, and analysts attributed the positive sentiment to China signaling more stimulus measures to come, including larger tax cuts, amid concerns of a slowdown in the world's second-largest economy. Recent economic data showed contractions in trade and factory activities in China, leading many to wonder if Beijing will be more aggressive with its measures to hold up the economy.
Hao Zhou, a senior emerging market economist for Asia at Commerzbank, said it's likely that China will lower its growth target in the coming months.
"The most likely case is China will set a growth target range for the coming year — I would say maybe 6 percent to 6.5 percent range. So, basically, (it) gives the government more flexibility in the coming year," he told CNBC's "Street Signs" on Wednesday. Hao explained cuts in corporate taxes would have a larger impact on the economy than reducing personal income tax.
For its part, China recently said it would grant more tax breaks to small firms.