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Hong Kong - Asian equity markets mostly rallied Thursday on strong US data and expectations of fresh eurozone stimulus measures, while oil prices gave up early gains to resume their downward trend after a surge in New York.
Confidence was given a much-needed boost by minutes from the US Federal Reserve's December meeting suggesting the world's most powerful central bank will not hike interest rates before April.
Tokyo surged 1.67%, or 281.77 points, to 17 167 as the yen gave up recent gains against the dollar, while Sydney climbed 0.52%, or 27.89 points, to close at 5 382 and Seoul advanced 1.11%, or 20.82 points, to 1 905.
Hong Kong rose 0.65%, or 154.27 points, to 23 836.
But Shanghai tumbled 2.39% on profit-taking in the afternoon following a rally that has seen the index surge more than 50 percent since November. The benchmark index fell 80.49 points to 3 293.
The advances come as a welcome relief for global markets, which have been hammered by a slump in oil prices and growing fears that Greece could exit the eurozone as an anti-austerity party looks set to win this month's general election.
Data showing consumer prices in the eurozone fell in December for the first time since October 2009, at the height of the financial crisis, also spurred expectations of more monetary easing.
The news, raising fears the bloc is about to slip into a damaging deflationary spiral, fuelled expectations the European Central Bank will embark on a vast bond-buying programme known as quantitative easing, or QE.
"(ECB chief) Mario Draghi will find it very difficult to deny" that deflation is negatively affecting the eurozone, "and this could force him to fire up the printing press", said IG analyst David Madden.
Traders betting the ECB will begin pumping out extra cash pushed the euro to $1.1802 at one point on Wednesday, its lowest since January 2006.
On Thursday it bought $1.1817, down from 1.1842 late in New York. It also fetched ¥141.60 compared with ¥141.70 in US trade.
The dollar was at ¥119.80 compared with ¥119.17 in New York.
"The inflation data is taking a toll on the euro," Naohiro Nomoto, an associate for currency trading at Bank of Tokyo-Mitsubishi UFJ in New York, told Bloomberg News.
"I can't think of any excuse for the ECB not to act (at its next policy meeting) in January."
Minutes from the Fed showing it remains on course to raise interest rates in the first half of this year also supported the dollar against the euro by highlighting the divergent monetary policy between Europe and the US.
Wall Street rallied on the report after suffering a five-day sell-off. The Dow added 1.23%, the S&P 500 gained 1.16% and the Nasdaq rallied 1.26%.
US shares were also helped by data showing the trade deficit shrank sharply to its smallest size in nearly a year and the private sector added a higher-than-expected 241 000 jobs in December.
Oil prices rose in the morning session in Asia but gave back those advances later on, despite the gains across equity markets.
US benchmark West Texas Intermediate for February delivery dipped two cents to $48.63 and Brent North Sea crude edged down 15 cents to $51.00. Economists remain wary and warn they could resume their downtrend from five-and-a-half-year lows.
Gold fetched $1 206.35 an ounce, compared with $1 214.38 on Wednesday.
In other markets:
Taipei added 1.74%, or 157.94 points, to 9 238.03.
Taiwan Semiconductor Manufacturing gained 2.99% to Tw$138.0 while AU Optronics Corp was 7.0% up at Tw$18.9.
Wellington ended 0.29% higher, adding 16.00 points to 5 574.05.
Fletcher Building rose 0.37% to NZ$8.12 while Contact Energy was down 0.47% at NZ$6.36.
Manila finished 0.79% higher, adding 57.93 points to 7 367.63.
Ayala Land rose 4.44% to 35.25 pesos, Metropolitan Bank gained 2.47% to 87.10 pesos and SM Investments added 1.20% to 840.00 pesos.
Singapore rose 1.42%, or 46.75 points, to 3 345.11.
DBS Bank gained 1.41% to Sg$20.08, while real estate developer Capitaland rose 0.62% to Sg$3.27.
Bangkok added 1.39%, or 20.87 points, to 1 521.62.
Kasikorn Bank surged 4.59% to 228.00 baht, while Pruksa Real Estate soared 7.41% to 29.00 baht.
Mumbai rose 1.36%, or 365.89 points, to 27 274.71 points.
Auto major Tata Motors gained 3.68% to 512.20 rupees, while Reliance Industries fell 1.47% to 842.85 rupees.
Kuala Lumpur rose 1.10%, or 18.88 points, to close at 1 728.06.
Malayan Banking gained 1.05% to 8.70 ringgit, Public Bank rose 0.11% to 17.60 ringgit, while Ta Ann Holdings shed 3.18% to 3.65 ringgit.
Jakarta closed up 0.09%, or 4.71 points to 5 211.83.
