Mumbai, Sept. 10 -- Japanese equities recovered on Thursday, with the Nikkei 225 and Topix both rising 0.2% to close at 65,271 and 4,055, respectively. The gains ended a two-session losing streak as pressure from rising oil prices and global bond yields eased.

However, inflation and interest-rate concerns remained. The Bank of Japan is widely expected to raise interest rates next week, while board member Kazuyuki Masu indicated that the central bank will continue tightening policy as inflation moves closer to its 2% target.

The yen also strengthened to its highest level in nearly seven months. While a stronger yen supports import costs, it could hurt earnings for Japan's export-focused companies.

Technology and banking stocks led the r...