A weaker yen lifted Japanese stocks, with the Nikkei average closing up 0.26 percent at 39,688.81, led by chip-related stocks. The broader Topix index settled 0.17 percent higher at 2,816.54. Honda Motor rose 0.8 percent and Advantest gained 2.5 percent.

Nissan Motor plunged 6.4 percent to extend losses for a third consecutive session on reports it is in talks with Taiwan's Foxconn to let the electronics giant produce electric vehicles at a Japanese plant.

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