Shares fell in Tokyo on Thursday, cutting short Wednesday's rebound, after U.S. stocks tumbled amid declining oil prices and continued anxiety over Chinese growth.

The Nikkei average slid 2.7 percent to 17,240.95 at the close of trading, while the Topix index lost 2.5 percent to 1,406.55.

The Topix pared an earlier decline of as much as 4.1 percent as markets in China rebounded, but was still the biggest loser among benchmark indexes in Asia at the time of the Tokyo close. It jumped 2.9 percent Wednesday, climbing for the first time this year after sinking 9.4 percent in the first six trading days of 2016.