Japanese stocks gained on Thursday as a global bond sell-off intensified on strong US economic data, while weak demand at a Treasury auction pushed yields to their highest levels in nearly two decades.

The benchmark Nikkei 225 gained 495.04 points, or 0.76%, to 65,513.99.

Oil prices slipped after Iranian officials met U.S. officials on the sidelines of the UN General Assembly, with both sides signaling little progress as traders reassessed energy supply risks amid the Middle East conflict.

On the corporate side, Tokyo Gas (TYO:9531) completed the acquisition of nearly 8.0 million shares for about 50 billion yen, according to a Tokyo bourse filing on Thursday. Shares closed 2% lower.

Separately, Mitsubishi UFJ Financial Group (TYO:8306) ended 1% lower, as its unit MU Digital Bank Establishment Preparation received a banking license and was renamed MUFG Emut Bank, according to a Thursday release.