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Asian shares moved lower on Thursday as investors fretted about new setbacks in U.S.-China trade talks, but negative sentiment was tempered by U.S. Federal Reserve meeting minutes suggesting it would not raise the tempo at which it increases interest rates.

MSCI’s broadest index of Asia-Pacific shares outside Japan was flat, while Japan’s Nikkei stock index was 0.6 per cent lower.

A day after U.S. President Donald Trump said he was not pleased with trade talks between the United States and China, he called for “a different structure” in any trade deal.

The move added to uncertainty over the negotiations and prompted a fall in stock markets.

However, the release of minutes from the Federal Reserve’s May 1-2 meeting eased market concerns that it would raise interest rates more quickly than expected.

The minutes, which were seen as dovish, helped to push U.S. stocks into positive territory on Wednesday.

“(The) minutes read largely in line with latest Fedspeak. Consensus finds no major signs of accelerating inflation; wage improvements aren’t broad; drivers of the (work force) participation rate are still a mystery and the flatter yield curve isn’t flashing red yet,” Citi analysts said in a note.

The Dow Jones Industrial Average rose 0.21 per cent to 24,886.81, the S&P 500 gained 0.32 per cent to 2,733.29 and the Nasdaq Composite added 0.64 per cent to 7,425.96.

The two-year treasury note yield, which rises with traders’ expectations of higher Fed fund rates, was at 2.5282 per cent.

The yield on benchmark 10-year Treasury notes fell back below the 3-per cent threshold to 2.999 per cent, compared with its U.S. close of 3.003 per cent on Wednesday.

Australian shares were 0.1 per cent lower, extending losses into a sixth consecutive session on weak prices for iron ore and oil. New Zealand’s benchmark S&P/NZX 50 index was 0.4 per cent higher.

U.S. crude was flat at $71.83 a barrel. Oil prices fell on Wednesday after an unexpected rise in U.S. crude and gasoline inventories.

Brent futures stood at $79.80 a barrel. Last week, the global benchmark rose above $80 for the first time since November 2014.

The most-traded iron ore futures on the Dalian Commodity Exchange closed 0.7 per cent lower on Wednesday.

The dollar was down 0.25 per cent against the yen to 109.78.

The euro was up 0.1 per cent on the day at $1.1706. The dollar index, which tracks the greenback against a basket of six major rivals, was 0.1 per cent lower at 93.894.

Emerging market currencies are in the spotlight after Turkey’s central bank raised interest rates by 300 basis points to support a plunging lira.

The bank, which had been scheduled to hold its next policy-setting meeting on June 7, said it had increased its top interest rate to 16.5 per cent from 13.5 per cent.

The lira has fallen about 20 per cent so far this year to a series of record lows, but the currency reversed course after the central bank decision. It was last down 0.2 per cent at 4.5790 to the dollar.

Gold was slightly higher. Spot gold was traded at $1295.51 per ounce.

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