Asian shares shook off early losses on Friday, underpinned by overnight gains on Wall Street, while the dollar steadied after its recent rally ran out of steam on disappointing retail sales data.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up about 0.1 percent on the day. It was well off 7-week lows plumbed earlier in the week but still on track for a weekly loss of around 2 percent.
Japan’s Nikkei stock average was up 0.9 percent ahead of Friday’s settlement for Nikkei futures and options contracts expiring in March. Investors with long positions in Nikkei futures would like to see them settle at a higher price.
On Wall Street, U.S. shares rallied on Thursday, but the S&P 500 .SPX was still on track to post its third consecutive weekly decline, hit by the prospect of higher U.S. interest rates and the effect of the strong dollar on corporate earnings.
Nikkei jumps
Japan’s Nikkei 225 index soared above the 19,000 mark to its highest level since June 2000, with the help of upbeat index heavyweights. Industrial robot maker Fanuc is the top gainer in early trade, rocketing 13 percent, on news that the company plans to step up talks with investors. Fast Retailing and Softbank rose 1.6 and 0.7 percent, respectively.
The weakening yen also buoyed most of the exporter stocks; Nissan Motor and Nintendo elevated more than 1 percent each, while Mitsubishi Electric and Toyota Motor notched up 0.6 and 0.4 percent, respectively.
“The Nikkei 225 can go up further in 2015, probably closer to the 20,000 level, and what’s going to drive that that will be the low yen,” said Stephen Sheung, head of investment strategy at SHK Private.
