Australia's benchmark S&P ASX 200 index erased gains after hitting a three-week high earlier in the session, breaking its five-day winning streak after the January jobless rate rose to a decade high. The dismal data saw the Australian dollar tumble 1 percent, falling below 90 U.S. cents and retreating from Wednesday's one-month high.
(Read more: Australia's job picture keeps getting uglier)
"Personally, I feel the RBA won't be too swayed by this report, especially given the lag effect and a number of leading indicators suggests better times ahead. The key for future cuts now falls on the looming private capex figures and future inflation reads, however my view is that rates are on hold for some time to come," said Chris Weston, chief market strategist at IG.
Telstra rallied 0.8 percent after posting a 9.2 percent rise in net profit, the Australian Securities Exchange rose 1.6 percent after posting a 10.8 percent profit rise and the nation's biggest toll road operator Transurban added 0.2 percent despite a modest decline in net profit.
After the market close, Rio Tinto reported a 45 percent jump in second-half profit, beating forecasts.
Kospi falls 0.5%
South Korean shares erased gains after hitting a three-week high earlier in the session, ending a six-day winning streak, on heavy foreign selling. Investors also reacted to news that the Bank of Korea left its base rate steady for a ninth straight month, as expected.
Blue-chip stocks like Samsung and Kia Motors inched down 0.7 and 0.4 percent, respectively.
Meanwhile, the won reversed gains after hitting a near-one month high against the dollar for a second straight session.
India slips 1.2%
Indian shares fell after data on Wednesday showed retail inflation slowed to a two-year low in January while industrial production fell for a third straight month in December.
— By CNBC.com's Nyshka Chandran. Follow her on Twitter @NyshkaCNBC