Asian stocks rose in thin Boxing Day trade on Thursday, extending a "Santa Rally" with key markets Hong Kong and Sydney still shut for the holidays.

Japan's Nikkei index closed up 1.1 percent, boosted by comments from the Bank of Japan governor and share price gains for top-selling automaker Toyota.

China's plans for massive bond issuances in 2025 also bolstered investor sentiment.

"Even though many in the region are still shaking off a bit of a holiday hangover, with several markets closed for Boxing Day, Asian stocks opened higher, riding a favourable wave from China's financial bond juggernaut," said Stephen Innes from SPI Asset Management.

Shanghai, Bangkok and Taipei all edged up 0.1 percent, while Seoul lost 0.4 percent and Singapore shed 0.1 percent. Jakarta and Wellington were closed.

London Stockton, an analyst at Ned Davis Research, noted that the "Santa Claus rally could still be alive, with strong seasonality into the end of the year."

Stock markets have traditionally fared well in the last five trading days of the year and the first two in the new year, a trend known as the "Santa Claus rally."

Among a number of possible reasons advanced by experts include the festive holiday mood and purchasing ahead of the end of the tax year.

Innes said remarks from Bank of Japan governor Kazuo Ueda in which he refrained from signalling a potential interest rate hike next month also "influenced bullish regional sentiments."

Japanese market heavyweight Toyota ended nearly six percent higher after reports in the Nikkei business daily said it aimed to double its return on equity – a key measure of a company's financial performance.

In thin corporate news on Thursday, Japan Airlines reported a cyberattack that caused delays to domestic and international flights and prompted a temporary halt to ticket sales.

However later in the day the carrier said its systems had been restored after the "large data attack."

Markets had been closed across Europe and North America for Christmas. The Dow Jones closed up 0.9 percent on the eve, while the tech-heavy S&P 500 rallied 1.1 percent. (AFP)