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Asian shares rally on upbeat data

Hong Kong - Asian markets climbed for a second straight session on Friday following another record close on Wall Street and a string of positive economic data from China, Europe and the United States.

Buying sentiment was also helped by much welcomed earnings results, while investor confidence helped the dollar push higher.

Tokyo surged 3.29%, or 460.39 points, to 14 466.16 as the yen slipped, while Seoul added 0.14%, or 2.64 points, to 1 923.38. Sydney rose 1.09%, or 55.3 points, to 5 116.8.

And in the afternoon Hong Kong added 0.53% and Shanghai gained 0.25%.

Regional shares rallied on Thursday as traders welcomed the prospect the US Federal Reserve will keep its stimulus in place as well as strong US growth data and better-than-expected Chinese manufacturing.

They were given another boost on Friday after a survey showed eurozone manufacturing activity last month was growing for the first time since July 2011.

Soon afterwards, the US Institute for Supply Management index of activity also surged to its highest level since July two years ago, well above market estimates.

The news was a shot in the arm for Wall Street, where the S&P 500 surged 1.25% to a record close, while the Dow climbed 0.83% and the Nasdaq rallied 1.36%.

It also fuelled buying on currency markets, with the dollar jumping to 99.52 yen in New York on Thursday from 98.63 earlier in Tokyo.

On Friday in Tokyo forex trade the greenback climbed further, fetching 99.63 yen. The euro bought $1.3215 and 131.68 yen against $1.3208 and 131.45 yen.

The eurozone results added to optimism for the region's future after a slew of releases that have pointed to a pick-up in the economy and a possible exit from recession.

And on Thursday European Central Bank chief Mario Draghi provided more support when he pledged to keep interest rates low - or even lower them.

"Recent confidence indicators based on survey data have shown some further improvement from low levels and tentatively confirm the expectation of a stabilisation in economic activity," Draghi said.

However, "the risks surrounding the economic outlook for the euro area continue to be on the downside," he warned at a news conference after the ECB's latest policy meeting.

On the corporate front Sony and Sharp surprised on the upside thanks to cost-cutting measures and a weaker yen. The electronics giants enjoyed an uptick on Friday, a day after Sony said it had swung to a profit in the three months to June, while Sharp managed to shrink its year earlier net loss.

Eyes will now be on Washington later Friday, when the government releases non-farm payrolls data, which will give an idea about the strength of the world's number one economy.

On oil markets New York's main contract, West Texas Intermediate for delivery in September, climbed 72 cents to $108.61 and Brent North Sea crude for September rose 46 cents to $110.00.

Gold cost $1 286.30 per ounce at 06:25 GMT, compared with $1 323.90 late Thursday.


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