SEOUL — Asian stocks were mostly higher Thursday on expectations for additional European Central Bank stimulus as jitters about tensions between Russia and Turkey faded.
Japan's Nikkei 225 rose 0.5% to 19,944.41 and South Korea's Kospi gained 1.1% to 2,030.68. Hong Kong's Hang Seng erased earlier gains, trading flat at 22,491.70. Australia's S&P/ASX 200 advanced 0.3% to 5,210.70. But Shanghai's index turned lower while stocks in Taiwan and Southeast Asia rose. US markets will be closed Thursday for Thanksgiving.
Reports European Central Bank officials are considering options for additional easing weighed on Europe's common currency. Next Thursday, the ECB's governing council meets to set monetary policy for the 19-nation bloc of euro countries in Frankfurt, Germany. It has already deployed quantitative easing and some analysts expect additional measures to help revive the moribund European economy and avoid deflation.
"Mario Draghi is not to be second-guessed, every time you think easing is priced in, we hear of new potential measures which raise the markets' expectations even more,'' said Chris Weston, chief market strategist at IG in Melbourne, Australia. Weston said after media reports on new stimulus in Europe, there were signs that showed "market has become very excited."
Asian markets dropped earlier this week after Turkey shot down a Russian fighter jet that entered Turkish territory from Syria. Angus Nicholson, a market analyst at IG, said that statements by Russia's foreign minister served to ease investor concerns as it indicated that Russia was not prepared to escalate the tensions with Turkey.
US data showed that consumer spending inched up 0.1% last month while spending on long-lasting manufactured goods improved in October, after two months of declines. Analysts said the latest data added weight to arguments for the Fed to raise interest rates for the first time in nearly a decade next month.
US stocks finished flat on Wednesday, one day before the Thanksgiving holiday. The Dow Jones industrial average rose 1.20 points to 17,813.39, while the Standard & Poor's 500 lost 0.27% to 2,088.87. The Nasdaq composite index picked up 13.33 points, or 0.3%, to 5,116.14.