HONG KONG - Asian markets fluctuated following a tepid performance in New York and Europe as traders fret over the inflation outlook and central bank plans to hike interest rates to tame rampant prices.
Wall Street closed relatively flat following mixed corporate results, and as a Federal Reserve report said that the US economy was "little changed" in recent weeks.
A mixed bag on corporate earnings also provided little motivation for traders, while results from US regional banks is coming into focus after last month's turmoil in the sector that saw three go under and Credit Suisse taken over.
Markets have in recent days been optimistic that central banks, and particularly the Fed, will be able to wind down their rate hiking drive soon after data showed inflation coming down, even if at a slower pace than wanted.
However, investors were jolted by news that UK prices were still elevated, rising more than 10 percent on-year last month owing to soaring food costs, fanning bets the Bank of England will have to keep tightening monetary policy.
It also showed that inflation remains stubbornly high and that officials still have their work cut out to bring it down.
The BoE has hiked rates 11 times since late 2021 in an unsuccessful bid to keep inflation close to a two percent target.
In the United States, the Fed said in its quarterly Beige Book update on the world's top economy that it had stalled in recent weeks and that liquidity was tightening in the wake of the banking upheaval.
Markets swung in early Asian trade, with Tokyo, Hong Kong, Sydney and Manila up but Shanghai, Singapore, Seoul, Wellington and Taipei were negative.
Oil prices dipped again, having shed two percent Wednesday on fears that the Fed could continue to hike rates, in turn denting demand for crude.