Asia stocks mostly higher; Nikkei jumps 1.7% to 8-month peak

Investing.com - Asian stock markets were mostly higher during late Asian trade on Thursday, with shares in Japan rallying to an eight-month high as the yen weakened after the Federal Reserve announced fresh easing measures to support the U.S. economy.

In addition, market players continued to monitor negotiations among U.S. lawmakers to avoid the looming “fiscal cliff” crisis.

During late Asian trade, Hong Kong's Hang Seng Index eased down 0.2%, Australia’s ASX/200 Index ended little changed, while Japan’s Nikkei 225 Index surged 1.7%.

The U.S. central bank said it would continue to purchase USD85 billion a month of government bonds and mortgage based securities in order to shore up the economic recovery.

The Fed also said that interest rates would remain close to zero as long as inflation forecasts remain near the bank’s 2% target and until the U.S. unemployment rate declines to 6.5% or less.

Meanwhile, investors continued to monitor developments surrounding the fiscal cliff in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1, unless a divided Congress and the White House can work out a compromise in the two weeks left before the deadline.

House of Representatives Speaker John Boehner said "serious differences" remain with President Barack Obama on the budget talks.

Fed Chairman Ben Bernanke warned that the Fed does not have the ability to “offset the full impact of the fiscal cliff”.

In Tokyo, the Nikkei climbed to the highest level since March, as exporters advanced after the yen sank to an eight-month low against the U.S. dollar..

The Nikkei has rallied nearly 13% in the past four weeks, with exporters amongst the most notable gainers, as ongoing weakness in the yen boosted the outlook for export earnings.

The yen has been weighed by speculation the country’s main opposition leader, Liberal Democratic Party chief Shinzo Abe will win the upcoming general election on December 16. Abe said recently that the Bank of Japan should employ unlimited monetary easing until inflation reaches 2%.
 
Consumer electronics makers Sony and Sharp rallied 6.3% and 6.4% respectively, while Panasonic surged 7.85%.

Automakers were in demand, with Honda shares gaining 2.75%, while Nissan and Toyota added 2.2% and 1.1%/

Meanwhile, shares in Hong Kong eased down after hitting a 16-month high, with energy players mostly lower.

China Resources Power Holdings saw shares drop 4.5% and CLP Holdings falling 3.6% after reports it plans to raise nearly USD984 million.

Elsewhere, in Australia, the benchmark ASX/200 Index ended flat near a 17-month high.

Global miners BHP Billiton and Rio Tinto provided support, tacking on 0.7% and 0.8% apiece.

Looking ahead, European stock market futures were mostly steady. The EURO STOXX 50 futures were flat, France’s CAC 40 futures added 0.2%, London’s FTSE 100 futures was little changed, while Germany's DAX futures pointed to a flat open.

Later in the day, the U.S. was to produce official data on retail sales and producer price inflation, as well as the weekly government report on initial jobless claims.