Asian shares gain despite downbeat data

Hong Kong -Asian shares were mostly higher on Friday, tracking gains on Wall Street and in European markets despite downcast euro zone growth data and statistics showing a larger-than-expected rise in US jobless claims.

Hong Kong gained 0.40%, Sydney added 0.31%, Shanghai was up 0.13% and Seoul edged up a tad.

But Tokyo was down 0.13% as investors locked in profits after four days of gains.

Mumbai and Seoul were shut for public holidays.

The Dow Jones Industrial Average added 0.37% to 16 713.58 on Thursday, extending the prior day's gains.

Traders shrugged off the rise in initial claims for US unemployment insurance benefits last week that did not alter the still-improving trend in the volatile weekly data.

New jobless claims, a sign of the pace of layoffs, rose to a six-week high of 311 000 in the week ending August 9, up 21 000 from the prior week's revised 290 000, the Labour Department said.

The four-week moving average was up 2 000 to 295 750, but still reflected an improving jobs market. A year ago the average stood at 335 000 claims.

Investors also appeared to view Thursday's weak second quarter euro zone growth data, dragged down by Germany and France as likely to spur the European Central Bank to step in with more stimulus for the 18-nation bloc.

Currency markets were stable after President Vladimir Putin said Russia should not "fence itself off from the outside world" despite a plunge in East-West relations over the pro-Kremlin insurgency in Ukraine.

He also said Russia "will do everything that depends on us to make sure that the (Ukrainian) conflict ends as soon as possible".

Investors interpreted the remarks as a signal by Putin that he preferred not to escalate the deadly Ukrainian crisis much further.

The dollar was at ¥102.51 in early Asian trade, compared with ¥102.45 in New York late on Thursday.

The euro bought $1.3362 and ¥136.91 against $1.3365 and ¥136.93 in US trade.

In oil markets, US benchmark West Texas Intermediate for September delivery rose two cents to $95.60 while Brent crude for October was up 31 cents at $102.38.

Gold traded at $1 311.84 an ounce at 04:41 compared to $1 310.00 an ounce late on Thursday.