Australia

Australian shares are set to gain after a positive trading day on Wall Street. All three major US indices benefited from rebounding consumer confidence as inflation continues to cool down.

ASX futures climbed 46 points or 0.64% at 7177 as of 7:00am on Thursday, pointing to a gain at the open.

Revived consumer sentiment boosted US stocks on Wednesday.

The S&P 500 rose 1.4%, with each of its 11 sectors in the green. The Dow Jones Industrial Average advanced 1.5%, about 500 points, while the tech-heavy Nasdaq Composite added 1.5%.

Early gains accelerated after consumer confidence data jumped sharply in December to its highest level since April. Sentiment around the economy and labor market improved, while inflation expectations for the year ahead dipped to 6.7% -- the lowest in more than a year.

Housing market data painted a mixed picture. Existing home sales fell for a 10th straight month in November to extend the longest streak of declines on record. However, home prices -- which have weighed on activity -- dropped for the fifth straight month after peaking in June.

Some analysts said the combination of a more confident consumer and falling prices -- as well as price expectations -- is likely welcome news for Federal Reserve officials, who are working on controlling inflation without causing a major recession.

In commodity markets, Brent crude oil added 2.99% to $US82.38 a barrel, while gold shed 0.21% to US$1,814.14.

In local bond markets, the yield on Australian 2 Year government bonds was down at 3.18% while the 10 Year remained at 3.72%. Overseas, the yield on 2 Year US Treasury notes edged down to 4.22% while the yield on 10 Year US Treasury notes dipped to 3.68%.

The Australian dollar hit 67.03 US cents up from the previous close of 66.76. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, edged up to 97.26

Asia

Chinese shares finished lower, reversing morning gains, as market sentiment remained weak due to the bleak economic picture caused by massive Covid outbreaks after a disorderly reopening. Although there is no nationwide shutdown currently, market participants and business owners are facing uncertainty after years of repeatedly stopping and restarting economic activities, wrote Robin Xing, chief China economist at Morgan Stanley, in an open column Wednesday. Chip makers and auto producers weighed on the market, with Semiconductor Manufacturing International Corp. dropping 1.3% and Great Wall Motor declining 1.8%. Food services and financial stocks outperformed the market. Ping An Insurance was 1.0% higher and Xi'an Catering was up 10%. The Shanghai Composite Index dropped 0.2% to 3068.41. The Shenzhen Composite Index lost 0.5% and the ChiNext Price Index was 0.3% lower.

Hong Kong stocks ended slightly higher, recovering from Tuesday's decline amid the market's long-term optimism over China's reopening. The benchmark Hang Seng Index rose 0.3% to settle at 19160.49. Trading volume was thin ahead of year-end holidays. The healthcare sector and some auto makers led gains, with Alibaba Health rising 2.1% and XPeng adding 4.7%. The tech sector's advance was offset by developers, as the Hang Seng Tech Index rose 0.7% and the Hang Seng Mainland Properties Index shed 0.2%. Country Garden, China's biggest developer, declined 1.5% and CIFI Holdings dropped 0.9%.

Japanese stocks ended lower, dragged by auto and real estate shares, as concerns grew about higher borrowing costs following the Bank of Japan's move to loosen its yield control. The yield on the 10-year Japanese government bond rose 0.07% to 0.480%, the highest level since July 2015. Car manufacturer Subaru dropped 3.7% and property developer Mitsui Fudosan lost 3.8%. The Nikkei Stock Average fell 0.7% to 26387.72.

Europe

European stocks made solid gains as Wall Street rose amid upbeat US corporate and economic news. The pan-European Stoxx Europe 600, the British FTSE 100, and the German DAX all advanced more than 1% while the French CAC 40 jumped 2%.

"Having just about closed in the green Tuesday, US markets have taken their cues from Wednesday's positive European session and the reaction to last night's numbers from Nike and FedEx, opening strongly higher," CMC Markets analyst Michael Hewson wrote. "A strong US consumer confidence number for December has also helped, rising to its best level since April this year, which has helped push yields slightly lower."

North America

Revived consumer sentiment boosted US stocks on Wednesday.

The S&P 500 rose 1.4%, with each of its 11 sectors in the green. The Dow Jones Industrial Average advanced 1.5%, about 500 points, while the tech-heavy Nasdaq Composite added 1.5%.

Early gains accelerated after consumer confidence data jumped sharply in December to its highest level since April. Sentiment around the economy and labor market improved, while inflation expectations for the year ahead dipped to 6.7% -- the lowest in more than a year.

Housing market data painted a mixed picture. Existing home sales fell for a 10th straight month in November to extend the longest streak of declines on record. However, home prices -- which have weighed on activity -- dropped for the fifth straight month after peaking in June.

Some analysts said the combination of a more confident consumer and falling prices -- as well as price expectations -- is likely welcome news for Federal Reserve officials, who are working on controlling inflation without causing a major recession.

Wednesday's climb marked a recovery after recent losses were fueled by the prospect of ongoing rate increases creating an economic downturn. The Bank of Japan's change to its yield curve control policy had also driven concerns about tighter financial conditions globally.

The path of inflation and Fed policy remains a key concern for investors, after rising rates hit markets hard in 2022, sparking steep declines in both stocks and bonds.

In individual shares, Nike jumped 13% after raising its revenue outlook and beating Wall Street's estimates, set to be the retailer's best one-day performance in 1.5 years. FedEx rose 4% after reporting earnings that declined from a slowdown in global trade, but not as sharply as analysts had expected.

Crypto miners were among the stocks struggling the most, especially after Core Scientific's bankruptcy filing. Shares of Rite Aid fell 16% after plummeting demand for Covid-19 vaccinations and testing marred the drugstore operator's outlook.