By Laura He and Michael Kitchen, MarketWatch

HONG KONG (MarketWatch) -- Asian stocks closed mostly lower on Thursday, after U.S. stocks broke a five-day winning streak overnight.

Japan's Nikkei Average dropped 0.6% to its lowest closing level in more than a week, while the yen (USDJPY) weakened against the greenback, trading at Yen102.05 from Yen101.993 on Wednesday. The broader Topix index inched down 0.1% at the close.

In Australia, the benchmark S&P/ASX 200 closed 0.5% lower, after data showed the number of employed in Australia decreased by 4,800 in May. Economists polled by Dow Jones Newswires had expected a gain of 10,000.

In mainland China, Shanghai stocks pulled back from their highest settlement since late April in the previous day. The Shanghai Composite Index snapped a three-day winning streak and edged down 0.2%. Hong Kong's Hang Seng Index settled 0.4% lower, as investors turned cautious before China released retail sales and industrial output data on Friday.

Some market movers included Chinese dairy product maker China Mengniu Dairy Co. , which fell 2.9% and Hong Kong property developer Hang Lung Properties , which declined 1.7%. Rival developer Cheung Kong (Holdings) dropped 1.2%, and Chinese online major Tencent Holdings ended down 0.5%.

In Japan, top investment bank Nomura Holdings climbed 2.2%, banking group Mitsubishi UFJ Financial Group rose 1%, while console maker Nintendo and optics manufacturer Olympus Corp. each fell 1.5%.

New Zealand's NZX 50 index rose 0.3%, after the Reserve Bank of New Zealand raised its benchmark Official Cash Rate to 3.25%, and central bank Governor Graeme Wheeler said the Kiwi economy has "considerable momentum." The New Zealand dollar (NZDUSD) advanced, buying 86.71 U.S. cents from 86.12 U.S. cents in the prior session.

Bank of Japan: Expect nothing

The Bank of Japan kicked off its two-day meeting Thursday, but few economists expect any new actions just yet.

While there had been some talk of further easing after the April hike to the consumption tax, the economy and markets haven't quite gone off the cliff that some had feared.

As Crédit Agricole put it in a note out today: "Recent anecdotal evidence suggests the economy has weathered the tax hike well, and we think the BOJ will maintain its wait-and-see approach."

In fact, Crédit Agricole predicts no fresh policy moves "for the foreseeable future," citing what its analysts see as a more upbeat tone in recent Bank of Japan statements and reports.

"Indeed, in its communication, the BOJ highlighted the diminished slack in the labor market as source of pressure for inflation," while also indicating it's "pleased with the response of the broader economy to the April tax hike," the bank says.

Then again, some economists do see central-bank action somewhere not too far down the road. Capital Economics, for instance, is tipping an October move "as it becomes clear that inflation excluding the effects of the consumption tax hike will fall short of the 2% target at the end of the year."

In fact, CapEcon sees the chance of more quantitative easing even if inflation does build, given a downward pressure on prices from some possible reforms.

Among the examples it cites: A Trans-Pacific Partnership deal that results in lower food prices, and potential reforms to shore up the labor market through more immigration or by encouraging more women "to look for paid rather than unpaid employment, e.g. a more favorable tax treatment and better access to child care."

China to lay down rules for online finance

The prospects for China's rapidly growing online financing industry seemed a little more uncertain Thursday, as the country's central bank announced a plan to tighten up oversight of the sector.

The People's Bank of China (PBOC) issued its 2013 annual report late Wednesday, warning about "increasing risks" in Internet financing activities.

Under the order of the State Council (China's cabinet), the central bank has been leading an effort to draw up "guidance" to regulate the online financial industry, according to the report.

"Internet financing companies often breach the existing regulations and enter a legally grey area," the PBOC said. "Sometimes they may have touched the 'bottom line' of illegal fundraising and business operations."

In particular, the central bank pointed to "P2P" (person-to-person) lenders, online credit platforms where borrowers can get cash from individual lenders over the Internet. It said risks can easily occur when some operators of P2P websites misappropriate or even flee with clients money.

(Some material in this report is from MarketWatch's Asia Stocks blog.)

More MarketWatch news:

Bank of Korea holds rates steady, but where next?

Japan's machine orders drop, but capex trend solid

Australia's unemployment rate holds steady

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