"The narrative of higher for longer is coming back into play despite the fact that the Fed does see a rate cut sometime this year. So this has got the market worried," said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina.
Stocks subdued, yen in focus, with inflation data on tap moneycontrol.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from moneycontrol.com Daily Mail and Mail on Sunday newspapers.
Japanese, South Korean and mainland Chinese stocks also rose, with much of the region, including Australia, Hong Kong and Singapore closed for a public holiday.