Japan's Nikkei share average gained on Thursday, hovering at a one-month high thanks to a softer yen as well as strong demand for energy, mining and chip equipment makers, though investors were wary of bidding up prices across-the-board given the recent rally.

Oil shares jumped after the Nikkei business daily reported that Japanese oil distributors are preparing to suspend the imports of Iranian crude oil in line with US demands, stoking speculation the move would lift procurement costs and bump up oil prices.

Oil and mining sectors were the best performers on the board, with Idemitsu Kosan surging 5.2 per cent, Showa Shell rallying 4.7 per cent and Cosmo Energy advancing 4.7 per cent. Inpex rose 4.6 per cent.

The Nikkei climbed 0.4 per cent to 22,894.62 in midmorning trade for its fifth day of gains. The benchmark index hit 22,949.32 on Wednesday, the highest level since June 13. The dollar rose to more than a six-month high of 113.14 yen in the previous session, before shedding 0.1 per cent at 112.71 yen.

“The Nikkei's level of 23,000 has become its immediate resistance level, and when the index nears this level, profit-taking occurs,” said Yutaka Miura, a senior technical analyst at Mizuho Securities.

Chip equipment makers gained ground after ASML Holding NV , a supplier of equipment to the world's biggest computer chipmakers, reported forecast-beating second-quarter results. Advantest Corp soared 3.6 per cent and Tokyo Electron added 3.0 per cent.

Messaging app operator Line Corp soared 4.3 per cent after UBS Securities raised its stock rating to 'buy' from 'neutral,' saying that its mobile payment transaction business will likely lead its growth.

Defensive sectors such as utility and food lost ground. Tokyo Gas shed 2.3 per cent and Osaka Gas declined 1.3 per cent. Brewer Asahi Group Holdings dropped 1.8 per cent and soy sauce maker Kikkoman Corp fell 1.6 per cent. The broader Topix added 0.3 per cent to 1,757.04.

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