Japanese stocks rose after Nvidia's strong quarterly results eased concerns about AI-related spending sustainability. Chip stocks led gains, with Kioxia Holdings up 5.9%, SoftBank Group 2.8% higher, and Tokyo Electron up 3.0%.

The dollar traded at 159.17 yen, compared with 159.06 yen at Wednesday's Tokyo market close. Investors monitored developments in the Iran conflict and crude oil prices.

The Nikkei Stock Average climbed 0.7% to 66725.13, driven by optimism over continued AI demand following Nvidia's earnings beat.

Market sentiment improved as semiconductor shares rebounded, reflecting renewed confidence in the sector's growth prospects.