Japan: Japan's Nikkei index erased the losses it had incurred earlier in the session to close trading on Thursday slightly higher, as investors await the release of US inflation data and Bank of Japan's monetary policy decision.

According to Qatar News Agency, the Nikkei index closed 0.2% higher at 65,270.95 points, after its previous fall of 0.8% by midday, pressured by Wall Street's overnight decline. The broader Topix index also finished 0.2% higher, closing at 4,054.58 points.

Shares of securities firms and banks saw increases of 2.5% and 2.0%, respectively, supported by higher interest rates. Meanwhile, some chip-related stocks showed strong performance, with Advantest gaining 3.3% and Lasertec rising 3.0%. However, Nintendo was among the biggest losers on the Nikkei index, experiencing a decline of 4.9%.