From what I understand, the time zone is based on what you had originally set up your account as. Once you have determined what time zone you are currently set to, you set up your 'Ad scheduling' within the "Campaign Setting" for the times you have specified. You may want to look into separate accounts.
Here's some info from Google Help:
"The time zone you select will determine the official "working day" for all billing, reporting, and statistics in your account. Choose your time zone carefully: once selected, it can't be reset."
And...
"What time zone should I choose for my AdWords account?
You can set your AdWords account for any time zone you choose.
Most advertisers prefer to select their own local time zone as the time zone for their account. But you can pick a different time zone for your account if you wish. The official "working day" for your account, including all billing, reports and statistics, will be from midnight to midnight in the time zone you set.
Your account time zone can be set only once, so please choose carefully. You can't change the time zone later.
Here are the answers to some common questions about time zone settings.
• Can I choose any time zone in the world?
Yes. Most people select their own local time zone, of course, but the choice is entirely yours. If you live in Nairobi and want your account to operate on Tokyo time, that's fine.
• Does choosing a time zone mean my ads will show only in that time zone?
No. Your ads will show in all the locations you have targeted in your campaigns. The time zone setting affects only the administration of your account.
• Does my time zone affect how my ads run?
No. This change won't affect the appearance, rank or pricing of your ads. It will simply let you track your account in the time that works best for you.
• Are time zones affected by Daylight Saving Time?
Yes. Your account shifts automatically to reflect any changes to the local time zone you have selected.
You can, if you wish, choose to have your account set to Greenwich Mean Time (GMT) with no shifts for Daylight Saving Time. To do so, you must choose '(GMT+00:00) No daylight saving' during the account signup process. To learn more, please see: Does Daylight Saving Time affect my account statistics?
• Can I set a time zone for each campaign?
No. Your time zone applies to your entire account.
• Can I change my time zone again later?
No. Your time zone can be set only once."
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