Asian stocks calmed down on Thursday after this week's global rally following the Wall Stock Exchange's overnight tumble, while oil fell sharply as the United States considered a massive drawdown on reserves to contain the surge in fuel price.

Brent crude oil futures were down 4.4% at $108.50 a barrel and U.S. crude oil futures fell more than 5% at $101.76 a barrel in the morning talks. The United States plans to release up to 180 million barrels of oil over several months from strategic reserves, according to four American sources, as the White House tries to bring down fuel prices which have soared since Russia invaded Ukraine at the end of last month.

MSCI's broadest index of Asia-Pacific stocks outside Japan fell 0.2%, led by a 0.7% decline in Hong Kong's Hang Seng. The Japanese Nikkei fell 0.2%. Australia's resource-heavy index rose 0.4%.

Inflation continues to pressure governments and central banks around the world. Germany recorded a whopping 7.6% inflation rate on Wednesday, sending its 2-year bond yield into positive territory for the first time since 2014. Spot gold was down slightly, 0.11%, at $1,930.74 an ounce.