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The 225-issue Nikkei Stock Average closed up 1,879.73 points, or 3.14 percent, compared with Wednesday, reaching 61,684.14 and ending a five-day losing streak.
Meanwhile, the broader Topix index ended the session 62.16 points higher, or up 1.64 percent, at 3,853.81.
Benchmark West Texas Intermediate crude oil futures dropped below 100 U.S. dollars per barrel after U.S. President Donald Trump stated that a deal with Iran was in the "final stages." This development eased inflation worries and encouraged investors to buy stocks, according to market analysts.
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