TSMC, the world's main producer of advanced AI chips, is expected to post a jump in second-quarter profit to record levels, though US tariffs and a strong Taiwan dollar could weigh on its outlook. Profits for streaming giant Netflix, due later on Thursday, are also on investors' radar.

"With Netflix having outperformed the S&P 500 year-to-date by a sizeable 33 percentage points, and the street fully subscribed to the bullish investment case, Netflix will need to blow the lights out with a solid beat and raise," said Chris Weston, head of research at Pepperstone.

MSCI's broadest index of Asia-Pacific shares outside Japan was up just 0.06 percent and the Nikkei slipped 0.24 percent.

Canadian retailer Alimentation Couche-Tard said on Wednesday it was withdrawing its US$47 billion takeover bid for Seven & i Holdings, citing a lack of constructive engagement by the Japanese retailer.

Shares of Seven & i Holdings fell 9 percent.

European futures jumped as EUROSTOXX 50 futures rose 0.56 percent and FTSE and DAX futures added about 0.4 percent each.

Nasdaq futures and S&P 500 futures fell 0.1 percent each.

Also dominating the market mood was confusion over Fed Chair Powell's future at the central bank, after initial news that US President Donald Trump was likely to fire Powell soon sent stocks and the dollar sliding.

Trump was quick to deny the reports, restoring some calm to volatile markets, but he kept the door open to the possibility and renewed his criticism of the central bank chief for not lowering interest rates.

"I think the most likely outcome is for Powell to stay on until the end of his term next year. Having said that, this is not the first time, so there are going to be episodes of volatility in the dollar as a result of political noise," said Carlos Casanova, UBP's senior economist for Asia.

The dollar was on a fragile footing on Thursday, after having lost ground overnight on worries that the Fed's independence could come under threat.

The euro was last down 0.17 percent at $1.16 while sterling eased 0.13 percent to $1.34 after both currencies made gains in the previous session.

The dollar was little changed at 98.49 against a basket of currencies, having lost 0.33 percent overnight.

US Treasury yields also steadied after falling on Wednesday, due to expectations that Powell's removal could lead to quicker and deeper rate cuts, with the two-year yield last at 3.9 percent.

The benchmark 10-year yield was little changed at 4.4673 percent.

In Japan, yields on government bonds rose on Thursday as investors extended a selloff driven by fiscal concerns ahead of a closely watched upper house election on Sunday. Bond yields move inversely to prices.

"Regardless of the outcome of the election, we are going to see additional fiscal spending coming out of Japan," said UBP's Casanova.

Elsewhere, oil prices rose on Thursday, with Brent crude futures up 0.47 percent at $68.84 a barrel. US crude futures gained 0.62 percent to $66.79.

Spot gold dipped 0.15 percent to $3,341.29 an ounce.