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India rate cut, oil price rebound boost Asian shares

Asian stock markets traded mostly higher amid choppy trade on Thursday, as a rebound in energy prices provided some reprieve for oil-related counters. In India, markets clinched fresh highs after the country's central bank unveiled a surprise cut in its key repo rate by 25 basis points to 7.75 percent.

"Volatility could be the 'new normal' through first quarter, as markets continue to grapple with falling inflation, spiraling commodities, crazy bond yields, political uncertainties and ultimately a market that feels central banks have no juice to meet their mandates," said Chris Weston, chief market strategist at IG.

Read MoreAs crude falls, some fund managers snap up oil stocks

U.S. crude rose for a second session, with February delivery up 43 cents at $48.91 a barrel by 0005 GMT. Brent oil also rallied overnight, rising more than $2 or 4.5 percent, also its sharpest percentage gain since June 2012.

A couple of contributing factors, including the options expiration, led to the rebound, analysts say. "There was also roll-over activity, so as the Feb contract is rolling out, the March is going to become the front-month and we will see the volume transition from the Feb into the March," Ben Lichtenstein, president and founder of Traders Audio, told CNBC's "Street Signs Asia."

"In addition, this market has been sold so hard [that] you will see some profit-taking at some time."

Nikkei jumps 1.9%

Japan's benchmark Nikkei 225 index was one of the best performers in the region on Thursday, snapping a two-day losing streak on the back of a weaker yen. The U.S. dollar was fetching 117.8 yen in the afternoon, compared with 117.1 at Wednesday's close.

Exporters mostly recovered from the slump in previous sessions. Among gainers, Sony and Nintendo closed up nearly 3 percent each, while Toyota Motor scaled up 1.8 percent.

Softbank is in focus for investing some $600 million, along with Alibaba and others, in a Chinese taxi-hailing app operator Travice. Shares of the mobile carrier advanced nearly 1 percent.

Bucking the uptrend, Skymark Airlines closed down 7 percent after the Asahi Shimbun reported that the struggling airline decided not to seek help from ANA Holdings.

Meanwhile, Japan's core machinery orders increased by a smaller-than-expected 1.3 percent for the month of November, government data showed on Thursday, suggesting capital expenditure among manufacturers could weaken. The reading is significantly lower than a 5.0 percent rise forecast by Reuters, but an improvement from a 6.4 percent decline in October.

Read MoreHK housing fix: Good, but not good enough

Mainland indices up

China's Shanghai Composite index reversed opening losses to finish 3.5 percent higher, hitting a near one-week high, while the blue-chip CSI 300 index rose 2.9 percent.

Infrastructure plays were among the top gainers on Thursday, following reports that the government plans to boost investment to the western provinces by $96.9 billion. Hence, train makers CSR and China CNR surged by the maximum allowable 10 percent each.

Meanwhile, energy plays also garnered positive momentum from a halt in the falling of oil prices; PetroChina and China Oilfield Services elevated more than 8 and 3.6 percent each. Insurers also supported the bourse higher, as China Pacific Insurance and China Life Insurance tacked on 8.1 and 9.6 percent, and Ping An Insurance added 6.7 percent.

Meanwhile, central bank data showed Chinese banks issuing far less credit in December than expected despite a surprise rate cut by the central bank in late November.

In Hong Kong, the key Hang Seng index widened gains to advance 0.7 percent by late Thursday.

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