Asian shares mostly fell Wednesday, led by sharp losses in Shanghai, as oil prices took a hit from news that a crude workers strike in key producer Kuwait had finished after three days.

After an edgy start to the day, investors brushed off another strong lead from Wall Street and Europe to cash in after Tuesday's sharp gains.

Oil, which has been center stage this week after the collapse of weekend output limit talks, tumbled Wednesday after the industrial action in Kuwait was called off as union leaders look to negotiate a pay deal.

On equity markets Tokyo's Nikkei ended the day 0.2 percent higher, with speculation that Japan's central bank will unveil fresh stimulus following last week's double earthquake boosting sentiment.

However, Mitsubishi Motors crashed more than 15 percent on reports it had conducted faulty emission tests. The news comes as German car titan Volkswagen struggles to recover from its own massive emissions-cheating scandal, which hammered its reputation.

Sydney gained 0.5 percent and Wellington 0.4 percent.

China Volatility

However, the losses outweighed the gains and Shanghai was the biggest loser, shifting 2.3 percent.

Analysts said there was speculation dealers were concerned that a string of positive recent data on the world's No. 2 economy, China, could prevent authorities there from unveiling more stimulus measures.

But Wei Wei, an analyst at Huaxi Securities Co. in Shanghai, told Bloomberg News: "We haven't heard anything particular for the decline and it's strange and surprising that the market is dropping at such a fast and steep rate."

Hong Kong ended 0.9 percent lower, Seoul shed 0.3 percent, and Singapore fell 0.5 percent. There were also losses in Manila, Jakarta and Bangkok.

In early European trade London dropped 0.2 percent, while Frankfurt and Paris each fell 0.4 percent.

Source: China Post