Most Asian markets rose Tuesday following the previous day's retreat, but the dollar was hit by fresh uncertainty over Donald Trump's economic policy and contradictory views on future rate hikes by two top Federal Reserve officials.
Global stocks started the week with a wobble after G20 finance chiefs failed to renew a longstanding anti-protectionist pledge in the face of Trump's "America First" push, fuelling fears about the international trade system.
But investors returned to buying in early Asian business, with Hong Kong up 0.2 percent at lunch, building on a three-day rally that has pushed it to levels not seen since the summer of 2015.
Sydney was flat, Shanghai added 0.2 percent by the break, while Seoul jumped more than one percent. Taipei, Wellington and Manila were all higher.
But Tokyo was 0.3 percent lower in the afternoon as traders returned from a long weekend to find the yen had strengthened significantly against the dollar.
The greenback was at 112.65 yen, up from New York but well off the 113.33 yen mark seen when the Nikkei was last open Friday.
The dollar has come in for heavy selling since the Federal Reserve on Wednesday lifted borrowing costs but pointed to another two rises this year, confounding talk of a possible three or four.
On Monday Chicago Fed President Charles Evans suggested there could be more hikes this year but Minneapolis boss Neel Kashkari said the policy board should take its time.
The uncertainty surrounding US policy comes as investors are left waiting for some detail from Trump on his promise to ramp up infrastructure spending and slash taxes to fire up the economy.
World markets surged since his November election on expectations he would push the plans through but his lack of anything substantial has spooked some.
Jeffrey Halley, senior market analyst at OANDA, said in a note: "Post (Fed decision) the markets' attention has turned again to the Trump administration's lack of concrete policy announcements. With (Other OTC: WWTH - news) the new administration?s 100 days of action rapidly turning into 100 days of inaction, extended dollar reflationist long positioning has started heading for the door."
The dollar was also struggling against most other high-yielding units, with the South Korean won up 0.3 percent and the Mexican peso 0.7 percent higher.
The euro edged up as markets breathed a sigh of relief that centrist Emmanuel Macron came out on top in the first French presidential debate Monday, seeing off his closest rival in the election, the far-right, anti-EU Marine Le Pen (Other OTC: PENC - news) .
- Key figures around 0400 GMT -
Tokyo - Nikkei 225: DOWN 0.3 percent at 19,462.87
Hong Kong - Hang Seng: UP 0.2 percent at 24,558.82 (break)
Shanghai - Composite: UP 0.2 percent at 3,258.12 (break)
Euro/dollar: UP at $1.0760 from $1.0746
Pound/dollar: UP at $1.2370 from $1.2358
Dollar/yen: UP at 112.65 from 112.50 yen
Oil - West Texas Intermediate: UP 13 cents at $48.35 per barrel
Oil - Brent North Sea: UP 22 cents at $51.84 per barrel
New York - Dow: DOWN less than 0.1 percent at 20,905.86 (close)
London - FTSE 100: UP 0.1 percent at 7,429.81 (close)