Japan's Nikkei index closed higher on Thursday, after chip-related heavyweights pared early losses and energy stocks rose.

The Nikkei closed up 0.29 percent at 38,807.38 points, after three straight sessions of losses. The index fell as much as 0.76 percent earlier in the session.

The broader Topix index rose 0.49 percent to 2,661.59.

Utilities rose 4.12 percent, the best performer among the 33 sector sub-indexes on the Tokyo Stock Exchange, after Tokyo Electric Power Holdings jumped 6.76 percent.

Ineos Holdings shares rose 5.32 percent.

Nissan Motor Co jumped 2.23 percent after local broadcaster TV Tokyo reported the automaker was considering seeking a partnership with Honda Motor Co. Honda shares rose 1.13 percent.

Fast Retailing, owner of clothing brand Uniqlo, rose 1.62 percent, providing the biggest boost to the Nikkei.

Of the 225 components of the Nikkei index, 174 stocks rose and 51 fell.