India up 2%
India's benchmark index outperformed to hit a three-week high after new central bank governor Raghuram Rajan said on Wednesday that he plans to attract more foreign funds by subsidizing hedging costs for banks. He also said he would push for market liberalization and more rupee trade settlements.
(Read more: RBI's Rajan takes a deep dive to save the rupee)
As a result, the currency rose as much as 2 percent to 65.5 per dollar, its highest level in a week. Banks outperformed with ICICI Bank higher by 7.5 percent while State Bank of India and HDFC Bank increased over 5 percent each.
Japan's benchmark index crossed the 14,060 mark in choppy trade to end at its highest level since August 7 as the yen weakened to one-month low at 99.9 per dollar following optimistic remarks from the Bank of Japan.
The central bank left monetary policy steady, as widely expected but revised up its assessment of the economy, stating the economy was recovering moderately.
"We expect the BOJ to ease policy further in the first part of next year and all in all, that will be yen negative. We expect dollar-yen to reach 105 in 12 months time," said Hamish Pepper, forex strategist, Asia Pacific at Barclays Capital.
Automakers were higher with Honda Motor and Suzuki Motor higher by over 2 percent after U.S. auto sales neared a six-year high in August.
Sony closed up 0.8 percent after unveiling its latest device at the Berlin IFA show, a waterproof smartphone with a high-end compact camera.
(Read more: Sony's 'watershed' moment with waterproof phone?)
Shanghai 0.2% lower
China's benchmark index fell on profit-taking after hitting a two-and-a-half week high in the previous session. News that the People's Bank of China drained liquidity for the first time since May also weighed on sentiment.
Shanghai-listed airlines fell on news that Beijing is taking steps to deregulate its domestic and international aviation market, according to Wei Hou, vice president of Hainan Airlines. Hainan slipped 1.5 percent while Air China led losses by over 2 percent.
Property developers were mixed after news of a 34 percent rise in total sales for China's largest real-estate developer, Vanke. Shares closed up 0.3 percent while Gemdale fell 1 percent and Shanghai Shimao lost 2.5 percent.