Japanese stocks ended significantly higher on Wednesday, hitting their highest level in over four years, while the yen was hit by expectations that Japan's central bank will introduce tough easing measures.

The Nikkei Stock Average climbed 3.8%, ending the session at 11,463.75, a high last seen in September 2008.

The yen dropped after Gov. Masaaki Shirakawa said that he is planning to step down from his role, slightly ahead of the end of his term, which sparked hopes that the central back will issue a policy-easing plan.

The euro rose to ¥127.69 at one point, a level not seen since 2010.

Meanwhile, the Hang Send Index in Hong Kong rose 0.47%, the Taiex in Taiwan climbed 0.3%, and China's Shanghai Composite Index edged 0.1% higher.

In company news, Japanese financials soared, with Mitsui Trust Holdings and Mizuho Financial Group both markedly higher.

HSBC Holdings and Bank of China also got a boost, although the latter had fallen by the end of the day.

Both Honda Motor and Toyota Motor climbed, with the latter posting a 23% rise in quarterly profit which sent its shares rocketing 6% higher. Automobile manufacturers are typically amongst the main beneficiaries of weakness in the Japanese currency unit.

However, Kia Motors took a hit, alongside Hyundai Motor, which fell by almost two per cent.

Within the industrial sector, Kawasaki Heavy Industries and Mitsubishi Heavy Industries both moved higher.

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