Asia markets were lower on Thursday, with investors grappling with rising rates after strong U.S. economic data was released overnight.

The slid by 0.56 percent to close at 23,975.62, while the Topix index ended the trading day slightly weaker at 1,801.19.

The Kospi continued to slide, by 1.52 percent, to close at 2,274.49, following news reports that Bank of Korea Governor Lee Ju-yeol hinted at a possible policy rate hike later in October.

Stocks of South Korea's cosmetics brands took a hit on the back of weak sentiment about Chinese consumers, according to Reuters. Amorepacific shares dropped by 13.04 percent in the afternoon, while Cosmax fell 9.91 percent.

Hong Kong's Hang Seng index also lost 1.77 percent in the afternoon.

Down Under, however, the ASX 200 rose 0.49 percent, with the heavily weighted financial sector up 0.8 percent as Commonwealth Bank of Australia advanced by 0.45 percent and Australia and New Zealand Banking Group climbed up by 0.62 percent. Miner South32 also saw its stock jumping by 7.32 percent on the back of South Africa's Exxaro expressing interest in its local coal assets.

Data had shown the country's trade surplus increasing for the month of August — above expectations from a Reuters poll. Net exports rose 1 percent month-on-month while imports were unchanged.

China's markets are closed for the Golden Week holidays.