Japanese shares underperformed and the yen inched down against the dollar, as the Bank of Japan began its two-day policy meeting
European markets are also set to open slightly higher, with EUROSTOXX 50 futures up 0.3 per cent and the FTSE futures gaining 0.4 per cent
Investor worries of a cooling US economy, however, kept a lid on risk appetite, while the focus in Asia is on how Indian markets fare after stocks sank and the rupee slid
In Europe, investors expect the European Central Bank on Thursday to cut the benchmark rate by 25 basis points to 3.75 per cent
Investors are a lot less dovish on the Fed, seeing little prospect of a move until September and even that is far from a done deal
A downward revision to consumer spending meant the US economy grew more slowly than expected in the first quarter, data showed on Thursday
The latest halt in the global risk rally has come on the back of data pointing to lingering inflationary pressures across major economies
Japan's Nikkei, on the other hand, slipped 0.3 per cent, reversing some of the 0.7 per cent advance a day ago
Data on Thursday showed US jobless claims dropped while S&P Global's Flash PMI survey showed business activity expanded
MSCI's broadest index of Asia-Pacific shares outside Japan lost 0.57 per cent. Australia's S&P/ASX 200 index was one of the biggest decliners
New Zealand's central bank offered a sobering assessment of its inflation problems, warning that rates would have to be higher
Japan's Nikkei was a rare bright spot, rising 0.2%, adding to the previous day's 0.73% rally
Traders are pricing in 47 basis points of easing this year from the Fed, with a rate cut in November fully priced in
Gold marched back toward record levels, and crude oil added to gains after rebounding strongly
China stocks also gained, with blue-chip shares 0.14 per cent higher, while Hong Kong's Hang Seng Index rose 1.4 per cent, having touched an eight month high in early trading
Much of Asia is returning from a holiday that had closed markets on Wednesday, though Chinese bond, currency and stock markets remain shut through the rest of the week
Oil prices ticked down on expectations that higher-for-longer US interest rates would dampen demand, while news of a potential Gaza ceasefire eased fears of supply constraints
Nasdaq futures advanced more than 1%, while S&P 500 futures rose 0.85%
The MSCI Asia Pacific Index fell as much as 0.4% Wednesday before paring losses, with consumer discretionary and industrials among the biggest drags
A gauge of US-listed Chinese companies slipped Thursday amid declines for Baidu Inc, Yum China Holdings Inc. and Alibaba Group Holding Ltd