Asian shares mostly slipped in quiet trade, with the ongoing nuclear crisis in Japan weighing on sentiment in Tokyo, while traders were also looking towards the upcoming earnings season.
A report from the US Federal Reserve confirming the world's biggest economy was on a good recovery track, and President Barack Obama's plan to scythe spending did little to move investors.
Tokyo slipped 0.59 per cent by the break, Hong Kong fell 0.68 per cent and Sydney was 0.88 per cent off while Seoul gave up 0.16 per cent.
Shanghai was flat and Taipei gained 0.10 per cent.
Markets have been volatile this week after Japan suffered several strong aftershocks from the March 11 earthquake and tsunami, raising fears over a nuclear reactor.
"The market energy is expected to be weak as investors await Japan's corporate earnings and amid concerns about progress in the nuclear reactor issues and aftershocks," Hiroichi Nishi, a general manager at SMBC Nikko Securities, said.
Tokyo was also weighed by a stronger yen, which rose to 83.47 against the dollar from 83.79 in New York Wednesday. The Japanese unit also stood at 120.64 to the euro, from 120.98 in New York.
The yen was lifted after Brazil, Russia, India, China and South Africa, collectively known as BRICS, called for greater supervision of commodity markets and international capital flows, said dealers.
Investors were unmoved by the Fed's Beige Book on the state of the economy confirmed it was growing on a broad base around the country, though at an "only moderate" pace in many regions.
"Higher commodity costs were widely reported to be putting increasing pressures on prices," the bank said.
At the same time Obama outlined a plan to reduce the US deficit by $US4 trillion but said he would wield a "scalpel and not a machete" on health care, the military and some bedrock social programmes.
ANZ Bank senior economist Khoon Goh in Wellington said: "The earnings reporting season does not look likely to spark a fresh rally in (US) equities, and the run of upside surprises to US economic data look to be nearing its end, though this has more to do with improved expectations as opposed to poor data."
Singapore was down 0.27 per cent after the city-state tightened its monetary policy after posting strong first quarter growth of 8.5 per cent and amid concerns over inflation.
The decision saw the Singapore dollar surge against the greenback, hitting Sg$1.2453 before easing to Sg$1.2510.
Oil was mixed amid concerns the recent surges could have a negative effect on global growth.
New York's main contract, light sweet crude for delivery in May, rose 13 cents to $US107.24 per barrel.
Brent North Sea crude for May delivery shed 10 cents to $US122.78.
Ong Yi Ling, investment analyst for Phillip Futures in Singapore said sentiment was "not as bullish as before and crude oil could continue to dip slightly, looking for support at $105 per barrel".
Gold opened at $US1456.50-$US1457.50 an ounce in Hong Kong, down from Wednesday's close of $US1457.00-$US1458.00.
AFP