Also, markets moved in a tight range with investors waiting for key employment data from the United States on any insight in the world's largest economy.

Given recent dovish comments by the U.S. Federal Reserve, a milder reading in employment could further the case for a rate cut in the future, which may benefit regional markets with more capital inflows.

Markets anticipate that the Fed will cut interest rates soon after the central bank's top officials warned that the global trade war may force them to respond appropriately.

The Philippine bourse ended up 0.2% with a slowing economy and a lack of price pressures likely making the case for further policy easing by the central bank this year.

While data released on Wednesday showed annual inflation accelerating in May for the first time in eight months, investors remained optimistic after the central bank chief said the figure "does not constitute a trend".

Conglomerates SM Investments Corp and Ayala Corp dragged the Manila-index, each declining nearly 1%.

Restricting gains in the region, the International Monetary Fund on Wednesday warned that the Sino-U.S. tariffs could slash global gross domestic product by 0.5% in 2020, as the escalating dispute could depress growth that is currently expected to improve this year.

The estimate does not include the potential ramifications of U.S. tariffs on Mexican goods starting on Monday. Talks between the North American neighbours ended with few signs of progress on Wednesday.

Thai stocks rose on strength in the real estate and industrial sectors, although gains were capped by weakness in energy stocks tracking a protracted downtrend in oil prices.

However, in comparison to its regional peers, Thailand's economic outlook is rather strong for the year, given its strong current account balance and manufacturing activity.

Thailand's new parliament confirmed military junta leader General Prayuth Chan-ocha as civilian prime minister on Wednesday, in a vote that comes more than two months after the March 24 general election.

Elsewhere, utility and financial stocks weighed on the Vietnam index. Petrovietnam Gas Joint Stock Corp and Joint Stock Commercial Bank for Foreign Trade of Viet Nam declined 1.6% and 1.2%, respectively.

Indonesian and Malaysian markets were closed on Thursday due to holidays.

(Reporting by Niyati Shetty and Ambar Warrick in Bengaluru; Editing by Bernard Orr)

By Niyati Shetty