Mumbai, Aug. 13 -- Japanese stocks ended higher on Thursday, with the Nikkei 225 rising 1.16% to close at 68,308. The broader Topix gained 0.89% to 4,176 and touched a fresh record high.

Investor sentiment improved after softer-than-expected US inflation data reduced expectations of an interest rate hike by the Federal Reserve in the near term.

In Japan, producer prices rose 7.2% in July, easing slightly from 7.3% in June and coming below the 7.4% forecast.

Technology and artificial intelligence-related stocks led the gains. Kioxia Holdings rose 3.9%, Taiyo Yuden 6.5%, Advantest 4%, Ibiden Co 5.3% and Murata Manufacturing 10.3%.

Banking stocks also advanced, with Mitsubishi UFJ gaining 2.9%, Sumitomo Mitsui rising 1.6% and Mizuho Fina...