The Nikkei stock index closed higher for an eighth straight day Thursday amid hopes that the United States and Canada would be able to strike a trade deal, with the yen's retreat adding early support.

The 225-issue Nikkei Stock Average gained 21.28 points, or 0.09 percent, from Wednesday to close the day at 22,869.50.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, shed 0.46 point, or 0.03 percent, to finish at 1,739.14.

Local brokers highlighted the fact that the Nikkei reached a three-month intraday high as the market mood was risk-on following positive developments in U.S.-Canada trade talks, which buoyed U.S. bourses overnight and set the mood in Tokyo.

Yutaka Miura, senior technical analyst at Mizuho Securities Co., said that U.S. President Donald Trump remarking that Canada wants to be a part of the deal and that they were on track to reach an agreement raised optimism among investors here about the deal coming to fruition.

Other analysts have said the deal could be a sign of the U.S. easing back on its global tariff offensives and could mean that China and the United States could still potentially see frictions eased and progress made.

But strategists also maintained that markets here still remained wary of the situation in lieu of tangible momentum.

"Investors are cheering the developments. But they are not overly optimistic because while the market is focusing on North American trade issues now, they haven't forgotten about China-U.S. trade worries," Isao Kubo, an equity strategist at Nissay Asset Management, was quoted as saying on the matter.

The quick rise of the index on hopes for a trade deal with Canada led to profit-taking, brokers here said, with gains made quickly pared.

Nikkei heavyweights Fast Retailing and SoftBank Group Corp. helped prop up the market, adding 0.8 and 0.9 percent respectively, but automakers skidded down on investors securing profits.

Toyota Motor lost 0.9 percent to 7,003 yen, while Honda Motor dropped 1.1 percent to close at 3,356 yen.

Chip-makers here found favor on the Nasdaq's overnight rise, with Advantest adding 1.2 percent to 2,651 yen, while Yokogawa Electric rose 1.6 percent to 2,300 yen.

With the continuation of oil prices rallying on the back of U.S. crude inventories losing ground and turbulence in Iran and Venezuela, energy-related issues gained ground here Thursday, with oil exploration giant Inpex Corp. jumping 1.5 percent.

By the close of play, mining, fishery, agriculture and forestry issues led notable gainers, while precision instrument, transportation equipment, and electric power and gas issues comprised those that declined the most.

On the main section on Thursday, 1,399.35 million shares changed hands, rising from Wednesday's volume of 1,126.79 million shares and the turnover on the penultimate trading day of the week came to 2,633.6 billion yen (23.63 billion U.S. dollars).