FXstreet.com (Barcelona) - Asian markets are mixed on Thursday on a cautious session after signs of economic weakness given by U.S economy, which have arisen concerns about the strength of economic recovery. Euro and Pound have dropped from Wednesday's levels.

Japanese Nikkei Index has dropped 1.4%, while South Korean Kospi Index rose 1.3%, and Hong Kong's Hang Seng Index dropped 0.5%. In China, Shangai Composite Index has dropped 0.6%.

Asian markets rally has lost steam in the last day as benchmark indexes reached new highs this month and after the unexpected decline in U.S. housing starts released on Thursday.

Euro and Pound, on the downside

EUR/USD recovery from 1.4805 low on Tuesday was capped on Wednesday's U.S. session at 1.4990; several pips shy of 1.5000 key level, and the pair weakened during Asian session, dropping to 1.4900 low.

GBP/USD has declined from 1.6845 high on Wednesday, breaking below support area at 1.6750 to hit a session low at 1.6685 before picking up to current levels, around 1.6710.

USD/JPY recovery from 89.00 was capped at 89.50, where the 100 hour SMA lies, and the pair dropped during Asian session, all the way to 89.00 support area again, which is being tested at the moment of writing.