TOKYO - Asian share markets rose in thin trading on Thursday as much of the region was on holiday for the Spring Festival, while the US dollar held its ground after the Federal Reserve signaled a pause in policy easing.

The exception was the yen, which strengthened against rivals including the dollar with Japan's central bank seen as on track to continue raising interest rates while others reduce them.

The strong yen weighed on Japanese shares, although the Nikkei managed to close with small gains. Australia's stock benchmark edged to a record high.

The US central bank held rates steady overnight as widely expected, with Fed Chair Jerome Powell saying there would be no rush to cut them again.

President Donald Trump's policies remain a risk for the Fed's policy outlook, and Saturday is likely to see new tariffs slapped on Canada and Mexico.

"Powell was unwilling to be drawn on the potential economic impact and monetary policy response to tariffs, immigration and regulatory change, but clearly the tails of the risk distribution related to these factors are long and heavy," said Elliot Clark, head of international economics at Westpac.

"Powell made clear in the press conference though that, while strong, the economy is not overheated."

On Wall Street, after-the-bell earnings reports from members of the Magnificent Seven megacap tech stocks were a mixed bag.

Microsoft beat quarterly revenue estimates, while Tesla's fourth-quarter profit margin missed expectations. Meta forecast first-quarter revenue below market estimates. Apple reports results later Thursday.

US stock indexes ended slightly lower on Wednesday, and tech was the biggest drag on the S&P 500 as the benchmark slipped 0.5 percent.

However, the mood looks to have improved with futures pointing 0.3 percent higher as of 0656 GMT.

Australia's stock benchmark closed up 0.6 percent, while Japan's Nikkei ended 0.3 percent higher after overcoming some early weakness. Most other major markets remained shut for holidays.

The US currency was overall steady against major peers at 107.92 on the dollar index , after ending Wednesday flat.

The euro edged down 0.1 percent to $1.0414 ahead of the European Central Bank's policy decision later in the day, with traders all but certain of a quarter-point rate cut, and looking for clues to justify the market view of up to three additional reductions this year.

Sterling was flat at $1.2440.

The yen, however, strengthened about 0.5 percent to 154.43 per dollar with Bank of Japan Deputy Governor Ryozo Himino saying in a speech that the central bank will continue to raise interest rates if the economy and prices move in line with its forecasts.

Traders currently expect one more quarter-point increase this year, potentially as soon as July.

Oil prices ticked higher, regaining some composure after US crude closed at the lowest level this year overnight, with the near-term focus on Trump's possible tariffs on Canada and Mexico, the two largest suppliers of crude to the United States.

US crude futures rose 0.2 percent to $72.73 per barrel. Brent crude futures added 0.1 percent to $76.64 a barrel.