Asian shares took a breather from their recent rally on Thursday as investors positioned for month- and quarter-end flows, while the Japanese yen tested fresh lows against the euro and a surging Swiss franc.

In Hong Kong, the benchmark Hang Seng Index gained 17 points, or 0.07 percent, to open at 26,536.

On the mainland, the benchmark Shanghai Composite Index opened down 0.03 percent at 3,852 while the Shenzhen Component Index opened 0.17 percent lower at 13,333.

Oil prices slipped, after surging over 2 percent overnight to seven-week peaks as a surprise drop in US crude inventories added to supply worries amid export issues in Iraq, Venezuela and Russia.

S&P 500 futures and Nasdaq futures inched up 0.1 percent ahead of a lineup of Federal Reserve officials, whose remarks will be closely watched for their views on interest rates. San Francisco Fed President Mary Daly said further rate cuts will likely be needed but the timing remained unclear.

Fed chair Jerome Powell had struck a cautious tone about further rate cuts, after the central bank delivered the first easing this year just last week.

MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.2 percent, having rallied 5.5 percent for the month and 9 percent for the quarter.

Japan's Nikkei rose 0.1 percent, after jumping 7 percent for the month and 13 percent for the quarter.

The yen was the biggest loser overnight, hitting an over one-year low on the euro at 174.78, just above a record low of 175.9. It also hit an all-time trough on the Swiss franc at 187.30 yen. (Reuters/Xinhua)