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Asian shares took solace from data showing broad US economic strength even as signs of spreading weakness in China and Europe checked the risk appetite, while the yen nursed its losses after sliding to multi-year lows against the dollar and euro overnight.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up slightly in early trade. It was on track for a weekly loss of over 1 per cent, but was underpinned by record finishes by the Dow Jones industrial average and S&P 500 after a spate of US data added up to a picture of broad economic strength.
US data
Initial US weekly jobless claims fell, factory activity in the US mid-Atlantic region grew at its fastest pace in two decades and the existing home sales strengthened, in stark contrast to Thursday’s disappointing data releases from Europe and China.
“The raft of data releases from the US continues to paint an upbeat assessment for the US economy at a time when numbers elsewhere have disappointed,’’ strategists at Barclays wrote in a note.
Japan’s Nikkei stock average edged down about 0.1 per cent in early trade.
Dollar vs yen
The dollar was steady against the yen from late US levels at 118.20 yen, after it scaled a seven-year peak of 118.98 on the EBS trading platform on Thursday.
The euro was also flat on the day at 148.26 after it soared to a six-year high of 149.12 yen in the previous session.
US crude
In the commodities market, US crude extended gains from Thursday, adding about 1 per cent to $76.61 after closing higher on Thursday.
The strong US economic data helped it snap a three-day losing streak, though oil markets remained wary ahead of whether the Organization of the Petroleum Exporting Countries will agree on reducing production when it meets next week.
Spot gold was steady on the day at $1,192.80 an ounce, on track for weekly gains despite pressure from the stronger greenback.
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