A string of upbeat data from the United States and a rally on Wall Street boosted Asian markets on Friday, while growing confidence in the global outlook saw dealers sell the safe-haven yen.
The latest statistics from Washington follow data out of Asia earlier Thursday that showed manufacturing slowly picking up, with China seeming to have come to the end of its recent malaise.
Tokyo jumped 1.31 per cent by the break, Hong Kong climbed 1.23 per cent, Sydney gained 0.17 per cent, and Seoul rose 1.06 per cent, but Shanghai was off 0.10 per cent after surging on Thursday.
Hong Kong’s Hang Seng Index outperformed Asian peers, buoyed by strength in Chinese financials and growth-sensitive sectors.
The Hong Kong Monetary Authority stepped into the currency market during New York’s Thursday trading hours to combat the local currency’s persistent move to the strong end of its trading range, suggesting investors could be looking to position for a rally in Chinese equities listed in Hong Kong.
More capital inflows into Hong Kong are expected and could be a source for further strength for a year-end rally after the party congress that starts next week and might alleviate some political uncertainty in China.