Mainland and Hong Kong shares ended up weaker on Thursday after hitting multi-month peaks, as a relief rally over the ceasefire in the Middle East took a breather.

In Hong Kong, the benchmark Hang Seng Index snapped a four-day winning streak to end the day down 149.27 points, or 0.61 percent, at 24,325.40, pulling back from a three-month high hit at the previous close.

Up north, the benchmark Shanghai Composite Index ended down 0.22 percent at 3,448.45 after briefly touching the highest level since December during earlier trades.

The Shenzhen Component Index closed 0.48 percent lower at 10,343.48.

The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 0.66 percent to close at 2,114.43.

The brokers sector lost 1.7 percent to give up some of the gains seen on Wednesday and the rare earths sector declined 1.2 percent.

Offsetting the onshore losses, the CSI Defence Index gained 0.4 percent while banking shares advanced 1 percent.

While markets have been soothed by a ceasefire between Israel and Iran, traders were on edge about US President Donald Trump's July 9 deadline on imposing tariffs on trading partners and his pressure on the US Federal Reserve.

China markets are expected to face some volatility pressure between July and August following the recent gains, and investors are advised to remain cautious in the short term, analysts at Morgan Stanley said in a note.

Analysts at Goldman Sachs said in a note on Thursday that they have observed strength across China assets from the trading desks with long-only funds and hedge funds both getting more active. Clients' feedback now expect more retail participation following the recent rally.

Still, the upcoming earnings season and corporate guidance for the second half will be the key focus as there's limited visibility on macro support, they added.

Japan's Nikkei share average touched its highest in almost five months, as a period of calm in the Middle East encouraged investors to buy back riskier assets, particularly chip and other high-tech shares.

The Nikkei climbed 1.7 percent to 39,584.58 at the close and reached 39,615.59 at its highest point during the session, a level last seen on January 31.

Artificial intelligence-linked stocks stood out, with startup investor SoftBank Group climbing 5.5 percent and chip-testing equipment maker Advantest advancing 5 percent.

By contrast, the broader and less tech-heavy Topix rose 0.8 percent. (Reuters)