Asian stocks ended mixed on Thursday after Microsoft reportedly lowered its AI product sales targets, reviving worries over softer AI demand and margins. Investors also adopted a cautious stance before rate decisions by the Federal Reserve and the Bank of Japan in coming days. China's Shanghai Composite index finished marginally lower at 3,875.79 after a choppy session on concerns over slowing services growth and a prolonged property slump. Hong Kong's Hang Seng index rose 0.68 percent to 25,935.90.

Japanese markets surged, with chipmakers in the AI supply chain gaining ground after reports emerged that Nvidia CEO, Huang, met with President Trump to discuss export controls on Nvidia's AI chips. The Nikkei average jumped 2.33 percent to 51,028.42, extending its rally for a third straight session and reaching a three-week closing high. The broader Topix index settled 1.92 percent higher at 3,398.21. Tokyo Electron climbed 3.2 percent and SoftBank Group shares surged 9.2 percent.

Seoul stocks ended a tad lower to snap a two-day winning streak. The Kospi average slipped 0.19 percent to 4,028.51, with chipmakers leading losses on renewed concerns over stretched valuations in artificial intelligence (AI).

Australian markets eked out modest gains as strong copper prices boosted mining stocks. The benchmark S&P/ASX 200 inched up 0.27 percent to 8,618.40 while the broader All Ordinaries index closed up 0.14 percent at 8,906.70. Across the Tasman, New Zealand's benchmark S&P/NX-50 index ended down 0.49 percent at 13,515.62, snapping a two-day winning streak.

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