Tokyo shares opened 1.46 percent lower while Sydney also dipped slightly, down 0.08 percent.

But Hong Kong, which saw trade cancelled on Wednesday because of a typhoon, opened 0.11 percent higher and Shanghai was up 0.15 percent. Seoul and Mumbai were shut for public holidays.

US markets dipped Wednesday after anaemic inflation data and a disappointing earnings report from Macy's suggested economic weakness in the world's biggest economy.

The Dow Jones Industrial Average was down 0.73 percent, or 113.35 points, at 15,337.66, its biggest point decline since late June.

But European markets closed mostly higher after official data showed the eurozone had finally climbed out of a record 18-month recession.

The eurozone boasted surprisingly strong growth of 0.3 percent in the second quarter led by Germany and France, the European Union said.

"The overall mood is net negative, but a reasonably supportive dollar should help to mitigate losses today," SMBC Nikko Securities general manager of equities Hiroichi Nishi told Dow Jones Newswires in Tokyo.

The dollar changed hands at 97.84 yen, compared with 98.14 yen in New York Wednesday afternoon.

The euro was at $1.3265 and 129.75 yen against 1.3255 and 130.08 yen in New York.

Japanese shares remain mired in the summer holiday doldrums with many market players off for the country's summer Obon holiday. Traders said the reduced volume has left the major indexes subject to heightened intraday volatility.

Oil prices moved higher in Asian trade Thursday supported by concerns that escalating violence in Egypt will disrupt supplies from the Middle East, analysts said.

New York's main contract, West Texas Intermediate for delivery in September, was up 24 cents at $107.09 a barrel, and Brent North Sea crude for September gained 37 cents to $110.57.

Gold rose to $1341.30 an ounce at 0235 GMT, up from $1330.37 on Wednesday. (AFP)