Mario is Italian which is also Western but isn't Mario a very Japanese style series?
Well, obviously Yoshi is Japanese (or at least has a Japanese name) but what else besides that is Japanese about the franchise? Smashing blocks and going through pipes isn't a Japanese thing, but it isn't really a western thing either. The Mushroom kingdom is neither east nor west, but its own unique parallel world type thing.
As for Mario, it was explained in (I think it was the cartoon or something) that he was an Italian from Brooklyn, so he is a Westerner that just happened to get sucked into this parallel universe one day.
Plus, I think the words "Goomba" and "Koopa" are Italian-sounding words, but I could be wrong. The mushroom stuff could be any nationality really, but Mushrooms are used frequently in Italian cuisine so who can say?