Asian stocks ended Wednesday's session on a muted note as the Chinese stock rally paused and the Israel-Hamas ceasefire deal faced uncertainty.
The dollar regained momentum after Minneapolis Fed President Neel Kashkari cautioned that interest rates are likely to remain on hold for an extended period.
The dollar's strength weighed on bullion while oil prices fell over 1 percent in Asia trading after data from the American Petroleum Institute pointed to rising stockpiles.
Chinese markets fell on profit taking after rallying to over six-month highs on optimism over improving economic conditions and hopes regarding potential stimulus measures to revive the country's struggling property market.
The benchmark Shanghai Composite Index dropped 0.6 percent to 3,128.48 ahead of April trade figures due on Thursday.
Hong Kong's Hang Seng Index ended down 0.9 percent at 18,313.86, falling from an eight-month high earlier in the day.
Japanese markets led regional losses after climbing sharply to hit a three-week high in the previous session. The Nikkei 225 Index tumbled 1.6 percent to 38,202.37, while the broader Topix Index settled 1.5 percent lower at 2,706.43.
Mitsubishi Heavy Industries plummeted 7.3 percent and Ricoh lost 6.2 percent, while Yokogawa Electric surged 8.7 percent and Nippon Yusen K.K added 4.1 percent. Toyota Motor dropped 0.6 percent after projecting a drop in fiscal-year profit.
Seoul stocks eked out modest gains, with the Kospi closing up 0.4 percent at 2,745.05.
Australian markets ended marginally higher, extending gains for a fifth consecutive session as investors assessed the central bank's stance on easing monetary policy.
The benchmark S&P ASX 200 Index inched up 0.1 percent to 7,804.50, while the broader All Ordinaries Index closed 0.1 percent higher at 8,076.70.
Lithium stocks soared, with Vulcan Energy rallying more than 10 percent and Liontown Resources adding 3.9 percent.
Across the Tasman, New Zealand's benchmark S&P NZX-50 Index slipped 0.2 percent to 11,782.89.
Overnight, U.S. stocks gave up early gains to end on a flat note as investors awaited more clarity on when the Federal Reserve may start cutting interest rates.
The Dow finished marginally higher to extend gains for the fifth consecutive session and reach a one-month high.
The S&P 500 inched up 0.1 percent to close higher for a fourth straight session, while the tech-heavy Nasdaq Composite slipped 0.1 percent.
For comments and feedback contact: editorial@rttnews.com
Market Analysis