Worries over the outlook for China also continue to weigh on sentiment in Hong Kong and Shanghai after mainland officials failed to provide any details on plans to boost growth, despite pledges of help.
Investors were also keeping an eye on Tokyo as the yen weakened to a fresh seven-month low against the dollar as Japanese and US monetary policies diverge.
With the weekend crisis in Russia appearing to have ebbed, focus is now back on efforts by the Federal Reserve and other central banks aimed at fighting inflation.
On Wednesday, Fed boss Jerome Powell said officials were leaving the door open to two more hikes, having paused at their July gathering for the first time since kicking off their campaign early last year.
"Policy hasn't been restrictive enough for long enough," he told an annual gathering of central bankers in Sintra, Portugal. "We believe there's more restriction coming."
He added policymakers had not decided whether to go for two successive increases or at alternate meetings and warned rates could stay high for some time as the board tries to cut inflation to their two percent target from the current four percent.
"We will be restrictive as long as we need to be," he said.
In a speech in Madrid on Thursday, he reiterated his warning that two more hikes were probably necessary by the end of the year.
Investors will be watching the release later Thursday of the personal consumption expenditures (PCE) index -- the central bank's preferred measure of inflation -- with a strong reading adding pressure to lift rates next month.
Powell's comments came after European Central Bank chief Christine Lagarde said eurozone borrowing costs would continue to rise. Sweden said Thursday it had hiked rates to a 15-year high.
Even Japan's central bank boss indicated it could move away from its long-running ultra-loose monetary policy, which it has stuck to despite rising prices and a sharp drop in the yen.
The Bank of Japan's Kazuo Ueda said it could begin normalising policy if officials were confident inflation would pick up next year.
He said underlying inflation remained below two percent but the board saw it slowing as the year went on.
"From there on, we are forecasting some increase in the rate of inflation into 2024 -- but, we are less confident about the second part," he added. "If we become reasonably sure that the second part is going to happen, that could be a good reason for a policy change."
Ueda's remarks gave a little support to the yen, which has dropped in recent months against its major peers as the Fed and ECB tighten, but it resumed its drop Thursday.
- Yellen eyes China trip -
Traders are keeping tabs on the yen after Japanese officials in recent days said they were following developments closely, indicating they could intervene to provide support if it continues to weaken.
The speeches in Portugal firmed up expectations that monetary policies would remain restrictive.
Wall Street and Asia followed suit, with Tokyo, Wellington, Taipei, Bangkok and Manila up but Hong Kong, Shanghai, Sydney and Seoul down.
London and Frankfurt dipped in the morning but Paris edged up.
Daniel Lam, at Standard Chartered Wealth Management, said Asia could benefit from ever-rising US rates -- even with the economy holding up -- as investors seek cheaper borrowing options.
"Economic surprise was really one of the key reasons why US equities were doing so well over the last few months," he told Bloomberg Television.
"But if the hurdle gets higher and higher, becomes harder to beat, investors (may rotate) into other regions such as Japan and Asia."
Hopes for an improvement in China-US ties will be in view after Treasury Secretary Janet Yellen said in an interview aired Wednesday that she hoped to travel to Beijing to "reestablish contact" despite differences between the two countries.
The Biden administration has recently sought to dial down the heat on their relationship, and Yellen told MSNBC: "There are a new group of leaders, we need to get to know one another."
She declined to give an exact date for an expected visit, which Bloomberg has reported will take place early next month.
The talks would come soon after Secretary of State Antony Blinken's trip to the country, where he spoke to his opposite number and President Xi Jinping.
- Key figures around 0810 GMT -
Tokyo - Nikkei 225: UP 0.1 percent at 33,234.14 (close)
Hong Kong - Hang Seng Index: DOWN 1.24 percent at 18,934.36 (close)
Shanghai - Composite: DOWN 0.2 percent at 3,182.38 (close)
London - FTSE 100: DOWN 0.2 percent at 7,485.22
Euro/dollar: DOWN at $1.0915 from $1.0917 on Wednesday
Pound/dollar: UP at $1.2647 from $1.2637
Dollar/yen: UP at 144.60 yen from 144.47 yen
Euro/pound: DOWN at 86.33 pence from 86.36 pence
West Texas Intermediate: DOWN 0.6 percent at $69.13 per barrel
Brent North Sea crude: DOWN 0.6 percent at $73.57 per barrel
New York - Dow: DOWN 0.2 percent at 33,852.66 (close)
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