Asia-Pacific markets are trading lower across the board on Thursday after the latest Wall Street rally cooled overnight and July minutes from the U.S. Federal Open Market Committee pointed to "little evidence inflation pressures were subsiding" at the time of the meeting.
The S&P/ASX 200 in Australia fell 0.21% to close at 7,112.8. Japan's Nikkei 225 dipped nearly 1% to 28,942.14 while the Topix index dropped 0.82% to 1,990.5. In South Korea, the Kospi was down 0.33% and closed at 2,508.05.
Mainland China markets also took a tumble. The Shanghai Composite slipped 0.46% to 3,277.54 and the Shenzhen Component lowered 0.62% to 12,517.32 at the end of the trading. Hong Kong's Hang Seng index was down 0.8%.
After hiking rates by 50 basis points Wednesday, Reserve Bank of New Zealand Governor Adrian Orr said on Thursday he was confident inflation was falling.
"We are not saying we are out of the woods, we got still some work to do, but we have time on our side," he told CNBC's "Squawk Box Asia."
The Philippine central bank also joined the inflation bandwagon and raised interest rates by 50 basis points.
After the market closed Wednesday, Tencent posted its first ever quarterly sales fall. The company said its earnings were hurt by a lack of game approvals and regulations that limit playing time and a weak economy that hurt ad sales. On Thursday, shares of Tencent bounced 3.1%.