Asian stocks plunged on Thursday as a disappointing start of the mega-cap U.S. earnings season prompted investors to pull back on the artificial-intelligence frenzy.
A surprise rate cut in China also offered a reality check regarding the challenges facing the world's second-largest economy.
The U.S. dollar plummeted against the yen ahead of a Bank of Japan policy meeting next week where a rate hike may be on the table.

Gold fell more than 1 percent on profit taking as investors awaited U.S. GDP and PCE price index data that could offer more cues on when the Federal Reserve will cut interest rates this year and by how much.

Oil prices also declined on concerns over weak demand in China, the world's largest crude importer.

China's Shanghai Composite index dipped 0.52 percent to 2,886.74 as economic concerns mounted and surprise interest rate cuts did little to improve sentiment.

Hong Kong's Hang Seng index tumbled 1.77 percent to 17,004.97 as Chinese internet giants tracked losses in their U.S. peers.

Japanese markets led regional losses as tech stocks lost ground and the yen rose to its strongest level against the dollar in 2-1/2 months on BOJ rate hike bets.

The Nikkei average tumbled 3.28 percent to 37,869.51, hitting a three-month low and posting its biggest daily decline in three years. The broader Topix index settled 2.98 percent lower at 2,709.86.

Technology investor SoftBank Group plunged 9.4 percent while chip-related stocks such as Advantest and Tokyo Electron gave up 5-6 percent.

Renesas Electronics nosedived 13.6 percent after reporting a 29 percent decline in half-year profit. Nissan Motor plunged 7 percent after a profit warning.

Seoul stocks lost ground due to selling in the tech sector and concerns over economic recovery after data showed South Korea's economy contracted in the second quarter.

The Kospi average fell 1.74 percent to 2,710.65. Memory chip making giant and Nvidia supplier SK Hynix plummeted 8.9 percent despite posting its highest quarterly profit in six years on robust artificial intelligence demand.

Australian markets fell sharply to hit a two-week low, dragged down by tech stocks.

The benchmark S&P/ASX 200 dropped 1.29 percent to 7,861.20 while the broader All Ordinaries index finished down 1.36 percent at 8,094.30.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index fell 1.08 percent to 12,396.27.

U.S. stocks fell the most in more than 18 months overnight as disappointing earnings from Tesla and Alphabet fueled concerns the frenzy around artificial intelligence technology might be overblown.

In economic news, data showed new home sales fell to a seven-month low in June.

The tech-heavy Nasdaq Composite plummeted 3.6 percent to reach its lowest closing level in over a month, while the S&P 500 slumped 2.3 percent and the Dow tumbled 1.3 percent.

Asian stocks steadied on Friday as strong U.S. GDP data and cooling inflation suggested a soft landing is in sight for the world's largest economy.
Markets have raised their expectations for three rate cuts by the end of the year, with some economists expecting the Fed's first rate cut to be extra-large.
It is believed the release of the PCE deflator, one of the Fed's preferred price gauges, later today will shed further lightly on the outlook for rates.

China's Shanghai Composite Index recovered from an early slide to close 0.1 percent higher at 2,890.90. Hong Kong's Hang Seng Index finished marginally higher at 17,021.31 after volatile trading.

The Taiwan Weighted Index tumbled 3.3 percent as markets reopened from a two-day closure due to a typhoon.

Japanese markets closed lower, and the yen stabilized near a 12-week high against the dollar, heading into next week's Bank of Japan policy meeting where a 10 -bps rate hike may be on the table.

The Nikkei 225 Index ended down 0.5 percent at 37,667.41, failing to sustain earlier gains. The broader Topix Index settled 0.4 percent lower at 2,699.54. Hino Motors surged 12.8 percent and Canon added 6.7 percent after reporting strong earnings.

Seoul stocks snapped a two-day losing streak, with financials and shipping firms leading the rebound. The Kospi climbed 0.8 percent to 2,731.90.

Samsung Heavy Industries jumped 8.4 percent after analysts said the profitability of shipbuilders will likely improve toward the end of the year. Hana Financial, KB Financial and Shinhan Financial surged 4-6 percent.

Australian markets rebounded, with mining, financial and property developers leading the surge. The benchmark S&P/ASX 200 Index rose 0.8 percent to 7,921.30, while the broader All Ordinaries Index advanced 0.7 percent to finish at 8,153.40.

Mineral Resources rallied 3.5 percent after announcing its FY production results. Pilbara Minerals climbed 3.8 percent. Bellevue Gold plunged 21.6 percent after completing a capital raising.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index dropped 0.4 percent to 12,349.47.

U.S. stocks fluctuated before ending mixed overnight as strong second quarter GDP data offset more tech weakness.

Data showed the U.S. economy grew at an estimated 2.8 percent annual rate from April through June, double the rate from the prior quarter.

Inflation pressures subsided, with the personal consumption expenditures (PCE) price index, excluding the volatile food and energy components, increasing at a 2.9 percent rate, down from the prior reading of 3.7 percent in the first quarter.

Durable goods orders plummeted in June, while jobless claims fell more than expected last week, other reports revealed.

The Dow edged up 0.2 percent, while the S&P 500 gave up half a percent and the tech-heavy Nasdaq Composite shed 0.9 percent.