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Hong Kong - Asian shares slipped Thursday after minutes from the Federal Reserve's latest meeting showed it was considering winding down its stimulus "in coming months".
But Tokyo rallied as the comments sent the dollar surging against the yen.
The regional decline followed losses on Wall Street as another batch of data provided evidence of an uptick in the US economy, fuelling fears the Fed's bond-buying could be nearing its end.
Tokyo climbed 1.92%, or 289.52 points, to 15 365.60 as the dollar advanced against the yen, hitting a four-month high at one point.
However Sydney eased 0.37%, or 19.4 points, to 5 288.3 and Seoul fell 1.16%, or 23.46 points, to 1 993.78.
Shanghai closed flat, dipping 0.48 points to 2 205.77 after a late rally, while Hong Kong lost 0.51%, or 120.57 points, to end at 23 580.29. The two markets faced added selling pressure after HSBC said growth in Chinese manufacturing activity slowed in November.
Minutes from the Fed's October policy meeting showed board members felt recent economic indicators showed the time was approaching to start cutting down its $85bn a month bond-buying scheme.
"They generally expected that the data would prove consistent with the committee's outlook for ongoing improvement in labour market conditions and would thus warrant trimming the pace of purchases in coming months," the minutes said.
They reiterated that any such move was contingent on a continued strengthening of the US economy, and stressed that even if the programme was ended the bank was looking at other ways to keep short-term interest rates down.
Traders on Wall Street reacted negatively to the remarks, which came as official data showed stronger than expected retail sales in October as well as a pick-up in business hiring.
The Dow fell 0.41% the S&P 500 slipped 0.36% and the Nasdaq lost 0.26%.
"The view still is that there is a chance the Fed could taper in December," Michael Woolfolk, senior currency strategist at Bank of New York Mellon, told Dow Jones Newswires.
And Harm Bandholz at UniCredit said: "There can be no doubt that the Federal Reserve is again getting closer to ... moderating its asset purchases."
But he warned: "The key uncertainty for most (policy board) members remains, however, whether this labour market improvement is sustainable."
Expectations the Fed will be buying fewer bonds sent Treasury yields higher, which in turn boosted the dollar.
In Asian Tokyo trade the greenback climbed to ¥100.78 - its highest since mid-July - compared with ¥100.03 yen in New York Wednesday.
The euro fetched $1.3401 and ¥135.07 compared with $1.3435 and ¥134.40.
In China, banking giant HSBC said its preliminary purchasing managers' index of manufacturing came in at 50.4, down from a final reading of 50.9 in October, which was a seven-month high. A reading above 50 indicates growth, while anything below signals contraction.
The figures - the result of weaker export orders - threw a cloud over prospects for the world's number two economy.
Citigroup economist Ding Shuang said: "It may indicate the recent rebound has peaked and in the following months we will see slower growth."
He added that the softer figures were likely to extend through all of next year.
Oil prices were mixed. New York's main contract, West Texas Intermediate for December delivery, rose 32 cents to $93.65. But Brent North Sea crude for January fell 25 cents to $107.81.
Gold fetched $1 245.60 per ounce at 10:10 compared with $1 271.42 on Wednesday.
In other markets:
-- Taipei fell 1.28%, or 105.01 points, to 8 099.45.
Taiwan Semiconductor Manufacturing Co. dropped 1.94% to Tw$101.0 while computer maker Acer rose 1.63% to Tw$15.6.
-- Manila lost 0.53%, or 32.45 points, to end at 6 122.89.
-- Wellington slipped 0.45%, or 22.00 points, to 4 818.37.
Air New Zealand shed 1.9% to NZ$1.54, Ryman Healthcare lost 0.6% to NZ$7.79 and Contact Energy was off 0.41% at NZ$4.90.
