Japan's benchmark Nikkei index closed at its highest level in over a week after rumors surfaced that Prime Minister Shinzo Abe may flesh out growth strategies related to highly-anticipated structural reforms at a scheduled speech on Thursday.
(Read more: Here's why the Nikkei is surging today)
That optimism saw the yen resume its decline to breach the 103 handle against the dollar. Currency-sensitive exporters rallied with Fanuc, Nintendo and Honda Motor closing 3 percent higher.
Strong foreign buying also underpinned gains. A fund manager survey from Bank of America Merrill Lynch showed global investors increased their Japan equity allocation to 34 percent in December from 24 percent last month.
Meanwhile, exports rose for a ninth straight month in November, while the trade deficit came in at a smaller-than-expected $12.56 billion.
India jumps 1.3%
India's benchmark index shot up while the rupee rose to 62 per dollar after the Reserve Bank of India left interest rates unchanged at 7.75 percent on Wednesday, defying expectations of a hike after the inflation rate surged in November.
"Very few [people] expected an unchanged decision. Maybe, and I'm speculating here, it was due to a huge decline in the rupee we saw recently, which then fed into imported inflation. Maybe with the rupee stabilizing, they [RBI] are saying to themselves maybe inflation will stabilize so let's wait and see before reacting," said Sani Hamid, director of wealth management, economy and market strategy at Financial Alliance.
Shanghai 0.1% lower
China's benchmark Shanghai Composite index closed at a new one-month low for a third consecutive session on fears of tight liquidity.
Rising money market rates were in focus after the seven-day repo rate rose over 6 percent to its highest level since June after the People's Bank of China skipped open market operations in the past four sessions: