Asian shares prices edged away from five-month highs on Thursday, while the dollar steadied after slipping on Federal Reserve Chair Janet Yellen's indication that the U.S. central bank is in no hurry to hike interest rates.
MSCI's broadest index of Asia-Pacific shares outside Japan fell about 0.2 percent, as investors took profits after Yellen's testimony and a China factory survey's better-than-expected headline number lifted it to a five-month high on Wednesday.
Japan's Nikkei stock average outperformed, rising about 0.9 percent to a 15-year high, helped by news that the Federation of National Public Service Personnel Mutual Aid Associations, the body managing Japan's national civil service pensions, will raise its target allocation for domestic stocks to 25 percent from 8 percent.
“This officially-announced drastic investment strategy is giving renewed excitement to the market," said Shigemitsu Tsuruta, senior strategist at SMBC Friend Securities.
Wall Street
Wall Street shares were narrowly mixed on Wednesday as a positive mood was offset by a 2.6 percent fall for Apple which saw some profit-taking after gaining 21 percent since the start of this year.
Data released overnight showed solid U.S. new homes sales in January despite snow storms in the country's Northeast.
The U.S. data followed Wednesday's survey showing activity in China's factory sector edged up to a four-month high in February.
Yellen's congressional testimony on Tuesday and Wednesday suggested the Fed is in no rush to raise rates, even though technically she did not rule a hike as early as in June.
“The only thing that is clear is that the FOMC (Federal Open Market Committee) has given itself more flexibility than before," said Ray Attrill, global co-head of FX strategy at National Australia Bank in Sydney. "If U.S. data begins to positive surprise once more, the market will quickly jump back on to the 'Buy USD' bandwagon."