On Thursday, Asian share markets fell after minutes from the Federal Reserve'sFederal Reserve's early May meeting showed a majority backing half-percentage rate hikes in June and July, and as persistent concerns over global growth sapped confidence.
While the minutes highlighted policymakers' faith in the strength of the US economy, the mood on Wall Street overnight, sentiment in equity markets remains fragile after weeks of volatile trade as more central banks continue to tighten their positions, as more global central banks continue on the path of tightening.
I don't think the global economy is at risk of a slow down, I think we are slowing down. Barbara Ann Bernard, CIO of Wincrest Capital, a global long-short equity strategy hedge fund, told the Reuters Global Markets Forum that the potential for good investments is predominately on the short side.
South Korea's central bank raised interest rates for the second consecutive meeting on Thursday as it grapples with consumer inflation at 13 year highs.
The Fed's May 3 -- 4 meeting supported a half-percentage rate increase -- the first of that size in more than 20 years - and most participants judged that further hikes of that magnitude would be appropriate at the Fed's policy meetings in June and July, according to minutes from the meeting.
The minutes showed agreement among policymakers about the strength of the US economy, tightness of the labor market and high inflation, as well as global supply problems such as the Ukraine conflict.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.54 percent after trading higher early in the morning due to investor concern over those factors.
Seoul's Kospi was 0.25 percent higher after the central bank rate announcement came in line with expectations.
The decline in Asia contrasted with a more optimistic mood on Wall Street, where the Dow Jones Industrial Average increased 0.6 percent, the S&P 500 gained 0.95 percent and the Nasdaq Composite added 1.51 percent.
Rick Meckler, partner at Cherry Lane Investments, said the market is looking to stabilize and looking a bit forward to the point where the Fed can issue some different guidance and say the economy has slowed enough that they don't see the need to raise rates.
The dollar was little changed in Asia trade after rising on Wednesday after the Fed minutes. It was barely changed against the yen at 127.27, while the euro gained 0.11 percent to 1.0692 percent.
The dollar index, which tracks the dollar against a basket of major peers, was just 0.03 percent lower at 102.02.
The moves in US Treasury yields were muted. The 10-year yield was up to 2.7577 percent from a close of 2.747 percent, and the policy-sensitive two-year yield was flat at 2.506 percent.
After a cautious rally this week, crude oil was steady, with Brent crude flat at $114.03 per barrel and US crude up 0.13 percent at $110.47.
Spot gold was down 0.2 percent at $1,849. The ounce is 19 per ounce.