Meanwhile Japan's Nikkei regained ground lost on Wednesday. The dollar rebounded from an eight-month low against the yen on encouraging U.S. employment and service sector data.

 

Toyota Motor shares climbed after reporting its best operating profit in two years, beating market estimates, and lifting its cautious forecasts despite a sluggish U.S. recovery and a stronger yen.

 

Elsewhere in the region, China's banking regulator ordered a new stress test and instructed lenders to stop extending mortgages to people buying their third homes in four of the cities where house prices have risen sharply.

 

The move is a fresh demonstration that Beijing is intent on fighting property speculation and deflating record high prices.

 

Officials fear sky-high prices in major cities are feeding on themselves and making it impossible for ordinary people to get a foot on the housing ladder.