Asian stocks opened largely higher on Thursday, with Hong Kong leading the gains as investors worked on expectations the US Federal Reserve will cut rates next year.
Tokyo edged down at the open, weighed by a strengthening yen, with the currency also buoyed by expectations around the Fed's monetary policy.
Investors have been optimistic since the Fed's most recent meeting, when it signalled its rate-hike cycle could be nearing an end as global inflation slows.
Across Asia, most bourses were in positive territory on Thursday, with Shanghai, Seoul, Sydney, Taipei, Wellington, Jakarta, Manila, Singapore and Kuala Lumpur all rising at the open.
On Wednesday, the Dow Jones Industrial Average led gains on Wall Street, advancing 0.3 percent to finish at another all-time high of 37,665.52.
US indices returned to work on Tuesday, but European markets were only back on Wednesday, with London leading the way as it closed 0.4 percent higher.
While US inflation has slowed, it remains above the Fed's long-term target of around two percent, and analysts warned that consumer spending had still not bounced back to healthy levels.
US retail sales over the key holiday shopping season were up 3.1 percent year-on-year, according to the Mastercard SpendingPulse survey, but that was markedly down from the previous year's 7.6 percent jump.
"This is a reflection of a more cautious consumer and less discounting from retailers due to better inventory management," said investor Louis Navellier in a note.
"While inflation is falling, the runup from last year's high rate has still squeezed budgets against a modest wage growth closer to four percent."
Oil markets continued to fret over the threat of the Israel-Hamas war spilling out into an all-out regional conflict and the ongoing attacks on key Red Sea shipping lanes by Yemen's Huthi rebels.
On Wednesday, French shipping giant CMA-CGM resumed some transit through the waterway, days after Danish group Maersk announced it would return as a US-led naval coalition is now policing the maritime route.
German shipping giant Hapag-Lloyd AG, however, said it would continue to avoid the Red Sea route and would route shipments via the Cape of Good Hope.
- Key figures around 0230 GMT -
Tokyo - Nikkei 225 (BREAK): DOWN 0.5 percent at 33,503.94
Hong Kong - Hang Seng Index: UP 1.3 percent at 16,833.95
Shanghai - Composite: UP 0.7 percent at 2,934.65
New York - Dow: UP 0.3 percent at 37,656.52 (close)
London - FTSE 100: UP 0.4 percent at 7,724.95 (close)
Euro/dollar: UP at $1.1111 from $1.1109 on Wednesday
Dollar/yen: DOWN at 141.35 yen from 141.81 yen
Pound/dollar: FLAT at $1.2806 from $1.2801
Euro/pound: UP at 86.77 pence from 86.75 pence
West Texas Intermediate: UP 0.2 percent at $74.22 per barrel
Brent North Sea crude: UP 0.2 percent at $79.82 per barrel