Asian stocks broadly rallied on Thursday morning, after the U.S. Federal Reserve flagged the end of its tightening cycle and struck a dovish tone for the year ahead.

Euro zone industrial production declined by more than expected in October, with the sharpest drop for capital goods such as machinery, reinforcing survey indications that the single-currency area is in a recession.

Britain's economy shrank in October, official data showed on Wednesday, raising the risk of a recession and testing the Bank of England's resolve to stick to its tough anti-inflation line against cutting interest rates from their 15-year high.

Japan's core machinery orders unexpectedly rose in October, climbing for a second straight month, data showed on Thursday, but remained down year-on-year as uncertainty about the global economy pared companies' appetite for fresh investments.

The retail sector could continue to lead U.S. bankruptcies next year due to sticky inflation and high interest rates, but analysts expect easing monetary policy to offer some respite in the second half of 2024.

U.S. producer prices were unexpectedly unchanged in November amid cheaper energy goods, and underlying inflation pressures at the factory gate were muted.