The first batch of provincial governments will be able to sign a contract with the National Council for Social Security Fund to invest within 2016.
The firm increased such foreign bonds by about 50 billion yen in the first financial half year to September.
Foreign investors, who were net sellers of Japanese stocks for five weeks, turned net buyers in the first week of October.
Germany, the largest of the 19 countries that use the euro, enjoys moderate growth and very low unemployment of 4.2 percent.
Footwear retailer Belle tumbled more than 9 pct after it reported a 19.7 pct fall in H1 profit amid a tough retail climate and intensifying online competition.
The blue-chip CSI300 index rose 1.2 per cent, to 3,367.58, while the Shanghai Composite Index also gained 1.2 per cent to 3,128.25 points.
The Australian benchmark index ended 0.4 percent, or 21.82 points, lower at 5,408.5.
The Philippine index fell as much as 1.03 pct to its lowest in nearly two weeks, weighed down by consumer cyclicals and financials.
Wall Street has complained about costs of many measures designed to make the financial system safer, but regulators have been firm.
MSCI's broadest index of Asia-Pacific shares outside Japan inched down 0.1 per cent. Japan's Nikkei stood little changed, while South Korea's Kospi gained 0.4 per cent.
US crude slipped 0.2 percent to $51.50 in early Asian trade on Thursday, after surging 2.6 percent to close at $51.60 in the previous session.
The central bank on Thursday left its main interest rates on hold and maintained the scale and duration of its bond-buying program.
Ebay has revamped its platform to offer a bigger selection of products and more brands and to require sellers to give more details on products to attract younger shoppers.
The STOXX Europe 600 Retail index also outperformed to rise by 1.5 percent.
The Nikkei ended 0.2 per cent higher at 16,998.91.
Offshore investors were poised to be buyers, purchasing a net 160.9 billion Korean won ($143.48 million) worth of KOSPI shares by mid-session.
Japan's conservative fund managers turned to higher-yielding foreign bonds, particularly Treasuries, earlier this year after the Bank of Japan stunned markets with its negative interest rate policy to help reflate the economy.
The pound rose 0.95 percent on Tuesday, its biggest gain in six weeks, to hit one-week high of $1.2326.
The 'Big Four' Australian banks rose in a range of 0.3 per cent to 0.8 per cent.
Burberry has been one of the best performing stocks since Britain voted to leave the European Union on June 23.
Analysts say this week's China monthly data dump will certainly attract attention given last week's trade data.
The Nikkei rose 0.2 percent to 16,928.31 points by midmorning, after trading in negative territory earlier.
The 10-year UK gilt rose to 1.17 percent, trading near its highest since the June referendum.
The median forecast for expansion in GDP, based on a poll of 18 economists, represents an easing from the second quarter's 6.7 per cent.
Tokyo Electric Power Company Holdings dived 8 percent and was the third biggest percentage loser on the board, making the utility sector the worst performer.
As part of a larger goal to globally reduce HFCs by 80 percent by 2047, signatories such as US, India and China have agreed to phase out the pollutants from cooling appliances starting 2019.
In a half-yearly report of business executives, consulting firm EY said uncertainties related to the Brexit vote are discouraging potential investors, particularly from Europe.
The buoyant overall tone of the survey commissioned by business advisory firm Deloitte echoed other measures of confidence by consumers who appear to have shrugged off the shock vote to leave the EU.
China unveiled guidelines this week to cut rising levels of corporate debt that some analysts fear could destabilise the world's second-largest economy.
Other Asian indexes also rose, buoyed by higher-than-expected Chinese inflation figures that eased worries over the world's No. 2 economy.
Fabrizio Campelli, head of Deutsche's global wealth management business, said that the bank had seen some fund outflows driven by the news of the last few weeks and it was working with clients to address their concerns.
The event is being held here ahead of the BRICS summit on October 15-16. The BRICS group comprises Brazil, Russia, India, China and South Africa.
The Nikkei slipped 0.4 percent by midday to 16,774.26, moving away from last Friday's five-week highs.
Analysts said the rise in Treasury yields also increased the dollar's attraction relative to the euro, with the spread between US and German two-year bond yields at its widest in a decade.
Wall Street struggled to find fresh momentum after breaking conclusively below a 100-day moving average this week.
The commentary comes after the yuan fell nearly one percent over the past three days following weeks of steady trade.