Asia markets lost some momentum on Thursday, even as global markets recovered from their post-Brexit plunge.
Australia's ASX 200 added 91 points, or 1.77 percent, to 5,233.40, boosted by more than 1 percent advances in the financials, material and energy sub-indexes.
Japan's Nikkei 225 closed nearly flat at 15,575.92, giving up most of its nearly 1 percent gains from earlier in the session. Across the Korean Strait, the Kospi closed up 13.99 points, or 0.72 percent, at 1,970.35.
In Hong Kong, the Hang Seng index gained 1.02 percent in afternoon trade. Chinese mainland markets were muted, with the Shanghai composite finishing near flat at 2,929.60 and the Shenzhen composite also flat near 1,974.23.
Analysts said the rally in global financial markets' recovery from a post-vote rout suggested diminishing importance of the Brexit crisis in the short term. But uncertainty over the U.K.'s future persisted as Britain had yet to invoke Article 50, which would formally begin exit talks with the European Union.
Boris Schlossberg, managing director of foreign exchange strategy at BK Asset Management, said, "[The] Brexit threat will only become real if U.K. actually goes through with the invocation of Article 50, and it appears that this will not be the case for the time being."
"Although markets remain wary and cognizant of the existential risk of Brexit, as long the Article 50 is not invoked, further downside risk appears to be limited," he said.
Others suggested the fallout might be contained.
"So far, the U.S. financial markets suggest the Brexit crisis, at least from an economic standpoint, is far less serious than is suggested by the public rhetoric," said James Paulsen, chief investment strategist and economist at Wells Capital Management, in a note. But Paulsen warned the crisis was far from over and "more days of renewed financial market volatility seem likely."
Despite the global rally in stocks, investors continued to flock to haven assets, sending yields in bond markets lower.
The amount of negative-yielding global debt jumped to $11.7 trillion, a 12.5 percent increase since the end of May, according to a Fitch Ratings report Wednesday.
Thursday morning Asia time, the yield on the 10-year Japanese government bond was at negative 0.225 percent.
On Wednesday, the yield on the 10-year U.K. gilt was just above its post-Brexit low at 0.95 percent; the German 10-year bund was yielding a negative 0.13 percent, above its Friday low of negative 0.17. The U.S. 10-year rose slightly to 1.47 percent, but the 30-year Treasury yield continued to head lower, at 2.26 percent.