Asian shares are mixed in holiday-thinned trading with Wall Street closed for Thanksgiving

MANILA, Philippines (AP) — Asian shares were mixed Friday in holiday-thinned trading as tech stocks slipped as a recent rebound driven by hopes for an interest rate cut by the Federal Reserve lost steam.

While developments related to artificial intelligence have been driving recent ups and downs in world markets, the focus remains on the outlook for U.S. monetary policy. Recent comments by Fed officials have helped revive hopes the central bank will act during its meeting next month.

“Everyone is sprinting toward the same conclusion: the Fed will deliver holiday cheer,” Stephen Innes of SPI Asset Management said in a commentary.

Japan’s Nikkei 225 closed 0.2% higher to 50,253.91, rebounding from losses earlier in the day. Data showed Japan's housing starts rose 3.2% in October from the same period a year ago, the first annual increase since March. The number defied market expectations of 5.2% decline and reversed a 7.3% drop in September.

Government data also showed Tokyo’s year-on-year core inflation in November remained at 2.8%, unchanged from October and above the Bank of Japan’s 2% target. That reinforces expectations of a gradual shift by the central bank to higher interest rates, although a rate hike is not expected at the Bank of Japan's December meeting.

South Korea’s Kospi dropped 1.5% to 3,926.59 after the country’s industrial production fell 4% month-on-month in October, more than the 1.1% decline in September. Semiconductor production plunged 26.5% month-on-month, pushing down tech stocks like LG Energy Solutions, SK Hynix, Samsung Electronics.

In Chinese markets, Hong Kong’s Hang Seng index lost 0.2% to 25,885.82. The Shanghai Composite index edged up 0.3% to 3,888.60.

Australia's S&P/ASX 200 index fell less than 0.1% to 8,614.10, while Taiwan's Taiex rose 0.3%. India's BSE Sensex was up 0.1%.

Shares in Europe advanced Thursday ahead of the Thanksgiving holiday.

On Wednesday, before the trading holiday in the U.S., stocks closed broadly higher on Wall Street. The S&P 500 gaining 0.7% and the Dow up 0.7%. The Nasdaq composite added 0.8%.

Early Friday, Brent crude, the international standard, was up 15 cents at $63.02 per barrel.

The U.S. dollar rose to 156.35 Japanese yen from 156.31 yen. The euro fell to $1.1583 from $1.1596.