Singapore: Asian shares surged yesterday after encouraging retail sales and jobs data from the US suggested Asia's biggest export market was stabilising, while the euro fell on worries about heavily indebted Greece.
Japan's benchmark Nikkei average was up 2.07 per cent at 10,355.63 at 0230 GMT, while the broader Topix gained 1.53 per cent to 911.34.
The MSCI index of Asian shares outside Japan was up 0.77 per cent at 405.86.
Also boosting share sentiment in Tokyo, the Nikkei newspaper said that the Bank of Japan (BoJ) was examining a further easing of its already ultra-loose monetary policy and may make a decision on such a move as early as this month.
"In addition to a solid performance from US stocks, investors are welcoming a halt in the yen's advance against the dollar after a media report that the BoJ is considering additional easing measures," said Mitsuo Shimizu, deputy general manager at Cosmo Securities.
The dollar index rose to 80.58, with near-term resistance seen around 81.30, last week's high. The dollar also rose against the yen, inching up to 89.15 yen from around 89.07 yen late on Thursday in New York. "If dollar/yen climbs back above 90 yen," Shimizu said, "the Nikkei could break out of range-bound trade, with the next target likely being around 10,500."
US stocks rose on Thursday on the stronger-than-expected retail sales and a fall in first-time jobless claims. The Dow Jones industrial average closed up 47.38 points, or 0.46 per cent, at 10,444.14.
February's monthly sales performance among US retailers was the strongest since just before the recession started in 2007.
The jobless rate in the US held at 9.7 per cent in February and employment declined less than forecast. Payrolls dropped 36,000 last month after a 26,000 decrease in January,
A short squeeze in the euro appeared to have run its course, with investors once again fretting about Greece.
Traders said the market was likely to stay cautious, steering clear of higher-yielding currencies, ahead of the US jobs data. "Greece worries continue and with investors still cautious about risk, I would have a bias towards the US dollar," said Jonathan Cavenagh, currency strategist at Westpac.
The euro was down at $1.3572 from $1.3589 late in New York on Thursday when it lost 0.8 per cent. It had risen above $1.37 following a robust response to a Greek debt auction on Thursday.
Impact
But if fell after the chief of the European Central Bank (ECB), Jean-Claude Trichet, said recovery in Europe would be uneven, squashing any outside chances of a near-term rise in record low euro zone interest rates.
The ECB, as expected, kept rates unchanged on Thursday, but took a small step in unwinding some its extraordinary support for the economy..
Investors also fretted whether Greece's fresh plans to address its debt woes would win wider support in the European Union ahead of a meeting of German Chancellor Angela Merkel with the Greek prime minister later yesterday.
