ASX adds 0.1%
Australia's S&P ASX 200 index pulled back to the flatline as banking and resources heavyweights trimmed gains. The Australian dollar fell as low as $0.7336 against the U.S. dollar before recovering to $0.7385.
Westpac, Australia and New Zealand Banking and National Australia Bank ended nearly 1 percent higher.
Santos and Woodside Petroleum advanced nearly 2 percent each, after oil prices stabilized in Asian trade. Evolution Mining and Newcrest Mining rallied 4.4 and 3 percent, respectively, as spot gold touched a three-week high. Market bellwether BHP Billiton closed up 1.2 percent.
Meanwhile, investors were also fixated on a slew of corporate earnings. Telecoms giant Telstra plunged 2.2 percent after announcing a 1 percent slide in full-year net profit before the market open, as well as forecasting modest earnings growth in the current year.
The country's biggest gaming company Crown Resorts tumbled 3.2 percent after reporting a 41.3 percent fall in full-year net profit. News that billionaire James Packer has stepped down as chairman of the company and will be taking on a new executive director role may also have swayed sentiment.
Nikkei rises 1%
Japan's benchmark Nikkei 225 index fell into negative territory after the yuan fixing, but quickly hurled itself back above the flatline on the back of expectations that the yuan's depreciation could prompt further easing in Japan.
"Koichi Hamada, advisor to Prime Minister [Shinzo] Abe, has come out today and said that Japan can offset the [yuan] devaluation by further monetary easing. The [Bank of Japan] minutes out yesterday showed there were significant concerns by the central bank's board members about hitting the 2 percent inflation target by September 2016," IG's market analyst Angus Nicholson wrote in a note. "With deflationary pressures from the yuan's devaluation, there is going to be a high likelihood of further BOJ easing to stop an increase in the yen, possibly as soon as October."
A 2.8 percent surge in index heavyweight Fast Retailing also supported the bourse's rebound, alongside Trend Micro's 5.2 percent rise. Meanwhile, stocks with significant exposure to China such as construction equipment makers Komatsu and Hitachi Construction Machinery elevated 1 percent each.
However, SoftBank tanked 2.6 percent on the back of news that the telecommunications and internet giant is acquiring22.9 million additional shares in the U.S. wireless carrier Sprint.
On the domestic data front, core machinery orders fell 7.9 percent in June, posting its first decline in four months, according to data from the Cabinet Office early Thursday. On a year-on-year basis, the nation's leading indicator of capital spending rose 16.6 percent, below May's gain of 19.3 percent.