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Hong Kong - Asian markets mostly rose on Friday, taking a strong lead from Wall Street as investors became a little more upbeat about the US economy ahead of the release of crucial jobs data later in the day.
The euro held up after enjoying a rally on Thursday in response to the European Central Bank's decision to keep interest rates unchanged, despite fears of deflation in the eurozone.
Tokyo climbed 1.61% by the break, Hong Kong added 0.78%, Sydney rose 0.55% and Seoul was 0.44% higher. Shanghai, which opened for the first time after a week-long holiday, slipped 0.45%.
At the end of a week that started with turmoil in global markets, traders were a lot calmer hours before the US Labour Department reports its non-farm payrolls data for January.
"The upcoming jobs data is viewed as critical for markets, which are pricing in further growth. So any hints that they might be good are positive for sentiment," said Mutsumi Kagawa, senior strategist at Tokai Tokyo Research Centre.
The figures will be used as a gauge for the strength of the US economy and have taken on huge significance since the Federal Reserve began winding down its stimulus programme from last month.
Its decision last week to reduce the bond-buying scheme further this month sent world markets into a tailspin as investors fretted about the impact on emerging markets.
Hopes of an upbeat set of figures Friday were boosted by data Thursday showing new claims for US unemployment insurance benefits, which indicate the pace of layoffs across the economy, fell back last week.
In New York the Dow gained 1.22%, the S&P 500 added 1.24% and the Nasdaq tacked on 1.14%.
But kabu.com chief strategist Tatsunori Kawai told Dow Jones Newswires: "A weak number could trigger another market sell-off."
On currency markets the dollar dipped to ¥102.00 early on Friday, after climbing in New York to ¥102.10. However, it is well above the mid-¥101 range in Tokyo earlier on Thursday.
The US Labour Department's report of January data on job creation and unemployment early Friday "could make or break the greenback," said Kathy Lien of BK Asset Management.
The euro bought $1.3592 and ¥138.58 against $1.3591 and ¥138.79. However it is much stronger than the $1.3517 and ¥137.16 in Tokyo on Thursday.
Europe's single currency rallied on Thursday after the central bank kept rates at 0.25% and its head Mario Draghi brushed off talk that deflation was becoming a threat despite prices rising only marginally in recent months.
"If the ECB is holding tight, maybe it means the situation is not so dramatic" and recovery in Europe is still on its way, said Alexandre Baradez, analyst at IG brokerage.
Oil prices were mixed. New York's main contract, West Texas Intermediate for March delivery, eased four cents to $97.80 while Brent North Sea crude for March rose 19c to $107.38.
Gold fetched $1 259.80 an ounce at 02:20 GMT compared with $1 258.60 late on Thursday.
