Asian stocks made a lacklustre start to trading on Thursday after weaker-than-expected economic data cemented expectations the US Federal Reserve would cut interest rates at its meeting next week.

In Hong Kong, the benchmark Hang Seng Index rose 43 points, or 0.17 percent, to open at 25,804.

On the mainland, the benchmark Shanghai Composite Index inched up 0.04 percent to 3,879 while the Shenzhen Component Index was 0.02 percent higher at 12,957 and the ChiNext Index, China's Nasdaq-style board of growth enterprises, was up 0.01 percent at 3,037.

Further afield, the Nikkei 225 rose 0.8 percent while MSCI's broadest index of Asia-Pacific shares outside Japan was trading down 0.1 percent, weighed down by declines in South Korea and New Zealand.

S&P 500 e-mini futures were little changed, as momentum from US markets overnight petered out in Asia. Stocks on Wall Street advanced on Wednesday led by small-cap companies, as the Russell 2000 index jumped 1.9 percent and the benchmark S&P 500 rose for a second day. The gains came after US private payrolls data posted their biggest drop in more than two-and-a-half years.

They also came as a separate survey from the Institute for Supply Management showed its measure of services sector employment contracted in November, with the sub-index of prices paid falling to a seven-month low.

"That move aligns with our view that the recent uptick in supercore inflation is likely to subside, paving the way for a resumption of disinflation in 2026," said ANZ economist Henry Russell on a podcast.

"We remain of the view that it is appropriate for the Fed to continue to cut interest rates to respond to downside labour market risks," he said, adding the bank expects a 25 basis points cut at next week's meeting and further easing next year.

Fed funds futures are pricing an implied 89 percent probability of a 25-basis-point cut at the US central bank's next meeting on December 12, compared to a 83.4 percent chance a week ago, according to the CME Group's FedWatch tool.

The yield on the US 10-year Treasury bond was last steady at 4.0749 percent after the Financial Times reported on Wednesday that bond investors have expressed concerns to the US Treasury that Kevin Hassett, a candidate to become the chair of the Federal Reserve next year, could aggressively cut interest rates to align with US President Donald Trump's preferences, citing several insiders. (Reuters/Xinhua)