Production at U.S. factories unexpectedly rebounded in July as motor vehicle output surged, but activity continues to be hamstrung by higher borrowing costs.

Oil prices fell to a two-week low in Asian trade on Thursday, extending recent losses as markets fretted over an economic slowdown in China, while strength in the dollar also weighed amid continued signs of a hawkish Federal Reserve. 

The dollar pushed the yen deeper into intervention territory on Thursday as a resilient U.S. economy underscored the need for higher-for-longer interest rates, while a strikingly ultra-dovish Bank of Japan struggled to defend its policy stance.

Thailand's economy should continue to expand as the policy rate is approaching a level consistent with long term stability, minutes of the central bank's Aug. 2 monetary policy meeting showed on Wednesday.

The yen languished near its weakest level in nine months on Wednesday and kept traders on alert for any signs of intervention, while mounting concerns over China's sputtering economy and gloomy outlook soured the mood in Asia.

Asia stocks hit a 11-week low on Wednesday as renewed concerns about U.S. interest rates slugged Wall Street, while investors still smarted from dismal Chinese economic data and the absence of meaningful stimulus.