TOKYO, Aug 26 (Reuters) - Japan's Nikkei average clawed 0.7 percent higher from a 16-month low on Thursday, snapping a four-day losing streak as short-covering emerged and the market gained on a slight technical rebound.
Shares of exporters gained, buoyed by short-covering after recent slides and as the yen pulled back slightly from a 15-year high hit against the dollar this week.
The benchmark Nikkei rose 61.09 points to 8,906.48, while the broader Topix gained 0.6 percent to 811.79. (Reporting by Elaine Lies; Editing by Chris Gallagher)