The Japanese yen weakened against the other major currencies in the Asian session on Thursday, as most Asian stocks rose with higher crude oil prices boosting investor sentiment. Investors also got a respite from the wild swings in the Chinese stock market, which is closed for a two-day holiday.

In other economic news, data from Nikkei showed that the services sector in Japan continued to expand in August, and at a faster pace, with a PMI score of 53.7. That's up from 51.2 in July, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction. The composite index came in with a score of 52.9, up from 51.5.

Meanwhile, the Japanese benchmark Nikkei 225 index is currently up 257.58 points or 1.42 percent at 18,352.

Traders await the European Central Bank policy meeting due later in the day.

Wednesday, the yen showed mixed trading against its major rivals. While the yen rose against the pound, the U.S. dollar and the Swiss franc, it held steady against the euro.

In the Asian trading, the yen fell to 2-day lows of 184.71 against the pound, 120.69 against the U.S. dollar and 76.89 against the NZ dollar, from yesterday's closing quotes of 184.03, 120.31 and 76.32, respectively. If the yen extends its downtrend, it is likely to find support around 192.00 against the pound, 123.00 against the greenback and 83.00 against the kiwi.

Against the euro, the Swiss franc and the Canadian dollar, the yen dropped to 135.37, 124.45 and 90.96 from yesterday's closing quotes of 135.04, 124.09 and 90.66, respectively. On the downside, 138.00 against the euro, 127.00 against the franc and 95.00 against the loonie are seen as the next support levels for the yen.

Looking ahead, PMI reports from major European economies for August and Eurozone retail trade data for July are due to be released in the European session.

The European Central bank will announce its interest rate decision at 7:45 am ET. Economists expect the interest rate to be left unchanged at 0.05 percent. Following the announcement, European Central Bank President Mario Draghi will hold the customary post-meeting press conference at 8:30 am ET.

In the New York session, Canada and U.S. trade data for July, U.S. weekly jobless claims for the week ended August 29 and U.S. ISM non-manufacturing PMI for August are slated for release.

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