Asian markets ended mixed on Thursday amid hopes for fresh European stimulus while new data reinforced expectations for tighter U.S. monetary policy.
The euro (: EURUSD=) traded above the $1.06 handle, rebounding after hitting a seven-and-a-half month low of $1.0565 overnight, amid reports on Wednesday that European Central Bank (ECB) officials are considering unconventional easing measures, such as introducing a two tiered deposit rate, Reuters reported.
"According to the report, large depositors would be charged more than small depositors. This plan isn't likely to receive much support from Germany and France whose banks widely use the ECB's facility. However it is clear from today's price action that while investors have considered more stimulus, they have not considered how aggressive or creative they will be," said Kathy Lien, managing director of FX strategy at BK Asset Management.
Those stimulus expectations saw the STOXX Europe 600 (STOXX: .SX8P) rally 1.3 percent and the German DAX (XETRA: .GDAXI) close up more than 2 percent overnight.
Meanwhile, positive data on U.S. personal income, durable goods orders and weekly jobless claims released on Wednesday will likely boost the Federal Reserve's resolve to hike interest rates next month, analysts said. U.S. stocks closed narrowly mixed in low volume trade following the data deluge. Wall Street will be closed Thursday for Thanksgiving and the stock market closes at 1 p.m. ET on Friday.
Hong Kong flat
The Hang Seng Index (Hong Kong Stock Exchange: .HSI) entered negative territory in afternoon trade after rallying as much as 1 percent earlier amid reports that the Shenzhen-Hong Kong stock connect could be launched by the second-quarter of next year.
Blue-chips were mixed, with HSBC (: ) 0.6 percent higher while Hong Kong Exchanges (Hong Kong Stock Exchange: 388-HK) dipped 0.5 percent.
Meanwhile, China's benchmark Shanghai Composite (Shanghai Stock Exchange: .SSEC) ended 0.3 percent lower in quiet trade, erasing earlier gains. News on Wednesday that Beijing announced fresh policies aimed at boosting foreign trade, such as lowering costs for importers and exporters, failed to boost sentiment.
Citic Securities (Shanghai Stock Exchange: 30-SZ) eased 1 percent after the securities association accusing the brokerage of overstating its derivatives business by more than $166 billion. Other brokerages also declined, with Everbright (Shanghai Stock Exchange: 1788-SZ) and Haitong Securities (Shanghai Stock Exchange: 837-SZ) 1.6 percent and 0.7 percent lower respectively.