Japanese stocks ended higher on Thursday, with the Nikkei 225 rising 1.16% to close at 68,308. The broader Topix gained 0.89% to 4,176 and reached a new record high. Investor sentiment improved after softer US inflation data lowered interest rate hike expectations by the Federal Reserve. In Japan, producer prices rose 7.2% in July, down from 7.3% in June and below the 7.4% forecast. Technology and AI stocks led gains, with Kioxia Holdings up 3.9% and Murata Manufacturing up 10.3%. Banking stocks also advanced.