Stock markets diverged on Thursday after a mini rally triggered by positive US economic data, while the yen maintained strength against the dollar after surging earlier in the week.
Equities have been volatile in recent weeks as investors weigh up global recession risks against the reopening of China's economy.
Investors pounced on a survey on Wednesday showing a bigger-than-expected jump in US consumer confidence this month, as inflation showed signs of easing.
Better-than-expected earnings from Nike and delivery giant FedEx also boosted sentiment.
All three main indices on Wall Street ended more than one per cent higher on Wednesday.
"The economy is still headed towards a recession, but the consumer continues to show signs of resilience which could delay a significant tumble for equities," noted Edward Moya, analyst at OANDA trading group.
The economy is still headed towards a recession, but the consumer continues to show signs of resilience which could delay a significant tumble for equities- Edward Moya, analyst at OANDA trading group
Hong Kong led the way on Thursday, rising more than two per cent, with tech firms tracking their US counterparts higher and property stocks boosted by comments from top Chinese officials pledging support for the beleaguered sector.
Towards the end of the day, Shanghai dipped on worries about rising COVID cases in China.
"The market is coming around to the notion that we will have a more orthodox 2023, including a... Fed that is looking to slow the pace of hikes amid better news on inflation," said Stephen Innes at SPI Asset Management.
The Federal Reserve, along with most major central banks, has aggressively increased interest rates this year to try and tame decades-high inflation.
Elsewhere on Thursday, oil prices extended recent strong gains in reaction to falling US stockpiles that left crude inventories at their lowest levels in eight years.
On the corporate front on Thursday, France's privacy watchdog said it had fined US tech giant Microsoft €60 million for foisting on users advertising cookies – data files that track online browsing.