Japanese markets closed higher Thursday, while the U.S. dollar is trading higher against the Japanese yen.

Tokyo's Nikkei index gained nearly one-quarter of one percent to finish at 9,659.

The dollar was selling at 79.46 yen, a gain of nearly two-and-a-half yen from Wednesday. The value of the yen fell sharply after the Japanese government intervened in currency markets to keep Japanese-made products more competitive in foreign markets.

The Taipei market closed at 8,317, losing more than one and one-half percent .