Asian stocks closed mixed on Wednesday as investors digested headlines related to a months-long trade dispute between the U.S. and China. The Nikkei 225 advanced 0.86 percent, or 192.98 points, to close at 22,746.70, buoyed by extended softness in the yen. Steelmakers led gains for the day, with JFE Holdings rising 10.37 percent. Exporters, including automakers, notched firm gains, as did bank shares.

Over in South Korea, the Kospi gained 0.51 percent to end at 2,307.07. Tech was a mixed picture, with some Apple suppliers giving up early gains made after the iPhone maker beat earnings expectations. LG Innotek shed 0.31 percent after rising more than 2 percent. Chinese shares moved into negative territory as sentiment took a hit from trade headlines while investors digested the release of a private survey of Chinese manufacturing activity, which met expectations. The Shanghai Composite fell 1.81 percent to close at 2,824.21, with shares selling off in the afternoon, and blue-chip CSI 300 index finished the day down 2.01 percent. Meanwhile, Hong Kong's Hang Seng Index pared early gains to slip 0.54 percent by 3:03 p.m. HK/SIN, with steep losses seen in the real estate sector before the market close. Also compounding the moves lower was the fact that the Shanghai benchmark faced resistance at the 2,900 level, while the impact of central government support had started to fade slightly, Kenny Wen, a strategist at Everbright Sun Hung Kai Wealth Management, said in an email. Elsewhere, Australia's hovered both above and under the flat line before eventually closing lower by 0.07 percent at 6,275.70. MSCI's index of shares in Asia Pacific excluding Japan slipped 0.05 percent in afternoon trade, erasing the moderate advance seen earlier following news that the U.S. and China were attempting to restart trade talks.

Trade back in focus