(Updates prices at 0450 GMT)

By Rae Wee

SINGAPORE, May 23 (Reuters) - Several Asian share

benchmarks fell on Thursday as markets digested the implications

of policymakers in major economies preferring to take a patient

approach to monetary easing amid sticky inflation.

Geopolitical tensions were also at the forefront of

investors' minds as China's military started two days of

"punishment" drills held in five areas around Taiwan just days

after new Taiwan President Lai Ching-te took office.

That sent Chinese blue chips falling 0.9%, while

Hong Kong's Hang Seng Index similarly slid 1.4%.

In the broader market, MSCI's broadest index of Asia-Pacific

shares outside Japan eased 0.26%, while

Australia's S&P/ASX 200 index lost 0.5%, also hurt by a

pullback in some commodity prices.

More hawkish-than-expected minutes of the Federal Reserve's

latest policy meeting, a hot UK inflation print and a sobering

assessment of New Zealand's inflation problems from the

country's central bank have caused investors to pare their bets

of the pace and scale of global rate cuts expected this year.

"One thing that's interesting from the last 24 hours that

can be taken away is still the uncertainty from central banks

about policy settings and at what levels interest rates have to

be at, and where they need to potentially stay at, in order to

tame inflation," said Kyle Rodda, senior financial market

analyst at Capital.com.

"That's causing uncertainty from a policy point of view, but

it's obviously also causing uncertainty from a market point of

view."

U.S. stock futures meanwhile received a boost after AI

darling Nvidia ( NVDA ) forecast quarterly revenue above

estimates after the bell on Wednesday, which sent its shares

jumping 5.9% in extended trade.

S&P 500 futures tacked on 0.6%, while Nasdaq futures

surged 0.95%.

EUROSTOXX 50 futures inched up 0.38%.

Taiwan's tech-heavy stock benchmark similarly scaled

a record peak and last traded 0.25% higher, while the MSCI Asia

Pacific ex-Japan IT stocks index touched an over

two-year high.

Japan's Nikkei jumped 1.2%, drawing some support

from a weaker yen that touched its lowest level in

over three weeks. The yen was last at 156.70 per dollar.

Sterling and the kiwi held near two-month

highs and last bought $1.2729 and $0.61195, respectively.

Data on Wednesday showed inflation in Britain eased less

than expected and a key core measure of prices barely dropped,

prompting investors to pull bets on a Bank of England rate cut

next month.

Earlier that day, the Reserve Bank of New Zealand

wrongfooted markets by warning cuts were unlikely until far into

2025 at the conclusion of its policy meeting where it held its

cash rate steady as expected.

"There are still 'hard yards' to be done to bring annual CPI

inflation down to the 2% target midpoint in a timely and

sustainable manner, and thus monetary policy easing remains

unlikely this year," said Kelly Eckhold, Westpac chief economist

for New Zealand.

"Our baseline view remains that the first 25bp policy easing

will occur in February next year, to be followed by a series of

gradual (once a quarter) 25bp reductions that will eventually

lower the OCR to around 3.75% in 2026."

In commodities, gold dipped 0.2% to $2,372.93 an ounce

, away from its record high of $2,449.89 hit on Monday, as

the prospect of higher-for-longer U.S. rates took some shine off

the yellow metal.

Oil prices likewise fell, with brent crude down

0.56% to $81.44 a barrel, while U.S. crude edged 0.7%

lower to $77.03 per barrel.