Asian stocks slip, $US perks up ahead of US holiday

European shares ticked up along with the US dollar on Thursday after both fell the previous day, while Asian stocks slipped, as trading volumes thinned ahead of the US Thanksgiving holiday.

Europe's continent-wide Stoxx 600 index rose 0.62 per cent in early trading after slipping 0.75 per cent over the previous two sessions.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.52 per cent, but Japan's Nikkei climbed 0.56 per cent.

Trading in US equities and Treasuries was closed, but US stock futures gauges ticked higher. Futures for the US S&P 500 were up 0.11 per cent after the index fell 0.38 per cent on Wednesday.

Data on Wednesday showed US consumer spending increased in October but the Federal Reserve's preferred measure of inflation ticked up to 2.3 per cent in October, from 2.1 per cent the previous month.

Together with the prospect of higher tariffs on imported goods, solid spending and inflation could narrow the scope for interest rate cuts next year.

"We continue to expect the FOMC to cut the Funds rate by 25 basis point at its December meeting," said economist Kristina Clifton at the Commonwealth Bank of Australia, referring to the rate-setting Federal Open Market Committee.

"However, another solid monthly core inflation for November will challenge the FOMC's view that inflation is trending down to two per cent per year."

The dollar index, which measures the US currency against six rivals, was 0.22 per cent higher at 106.33 after dropping 0.7 per cent in the previous session.

Chris Turner, global head of markets at lender ING, said Wednesday's fall in the dollar was likely driven in part by investors cashing in gains on US stocks and bonds in November before the end of the month.

"Presumably, some of this activity took place in the more liquid markets yesterday than waiting for Thanksgiving-thinned conditions."

In a surprise move, South Korea's central bank cut benchmark interest rates for a second consecutive meeting on Thursday after inflation slowed more than policymakers predicted. The won weakened after the decision.

The yen was 0.55 per cent lower at 151.91 per dollar after rallying to a one-month high in the previous session. The Asian currency is headed for its strongest week since early September on growing expectations of a rate hike from the Bank of Japan next month.

China and Hong Kong stocks fell on Thursday, as investors feared an escalation of the trade war with the US and a further ban on chip sales to China.

The blue-chip CSI 300 index closed down 0.88 per cent, while the Shanghai Composite index slid 0.43 per cent at 3,295.70.

The euro was down 0.29 per cent at $US1.0535 after rising 0.7 per cent in the previous session in the wake of European Central Bank board member Isabel Schnabel saying rate cuts should be gradual and move to neutral, not accommodative, territory.

European bond yields fell as prices climbed , a welcome bit of respite for France's government, which saw the country's borrowing costs rise to their highest over Germany's since 2012 on Wednesday.

French Finance Minister Antoine Armand said on Thursday the French government was ready to make concessions over its budget, which has faced widespread opposition from both far-left and far-right politicians.

Investors were watching inflation data for euro zone countries and German states trickle in on Thursday before whole-bloc figures on Friday.

In commodities markets, oil prices dipped as worries over Middle East supply disruptions eased after a ceasefire deal between Israel and Hezbollah. Brent crude futures were down 0.4 per cent at $US72.54 a barrel.

Spot gold was up 0.37 per cent at $US2,645 per ounce but on course for a near four per cent drop in November, its weakest monthly performance in over a year.