Tokyo shares close up 0.19 percent

The Nikkei 225 index at the Tokyo Stock Exchange gained 16.47 points to 8,479.63. The Topix index of all first-section issues added 0.50 percent, or 3.60 points, to 727.71.

Market activity lacked vigour with the earnings reporting season ended and as worries about eurozone contagion risks undermined sentiment.

"The market is positive, but the net moves are still not very large," Yoshihiro Okumura, general manager at Chibagin Asset Management, told Dow Jones Newswires.

"There is plenty of unease among investors as the euro looks weak, and there are fears that US markets could fall again," Okumura said.

Ratings agency Fitch warned Wednesday that US banks could be hit hard by the eurozone crisis due to their heavy exposure to the region.

However, Yumi Nishimura, senior market analyst at Daiwa Securities, said that negative sentiment was offset by recent upbeat US economic indicators.

Amid a lack of domestic trading cues, investors are focusing on Spanish and French bond auctions and US indicators such as the Philadelphia Federal Reserve's business outlook survey later Thursday, Nishimura said.

Toyota rose 1.54 percent to 2,505 yen and Honda climbed 1.39 percent to 2,255 yen. Sony was up 1.07 percent at 1,322 yen.

Scandal-hit Olympus extended gains for the fourth day amid easing delisting fears, finishing up 0.94 percent at 747 yen.

But the camera and precision equipment maker sharply pared its earlier gains -- rising as much as 18.6 percent to 878 in early trade -- after its main shareholder Nippon Life Insurance Co. said it cut its stake to 5.11 percent from 8.18 percent.

The euro fetched $1.3506 and 104.01 yen in Asian afternoon trade, recovering some ground from $1.3451 and 103.70 yen in New York Wednesday.

The dollar was at 76.97 yen against 77.01 yen.