Asian stock markets saw broad gains on Friday, making a strong finish to the week as they took their lead from Wall Street, which shrugged off lacklustre economic data.
Global markets have rallied this week, after a tumultuous period caused by the US Federal Reserve’s decision to reduce its stimulus programme for a second time in two months.
Tokyo stocks gained 0.62 percent in opening trade Friday, Hong Kong rose 0.94 percent, Sydney was up 0.72 percent, and Seoul gained 0.71 percent, while Shanghai was flat.
Investors were eyeing Chinese data showing inflation was steady at 2.5 percent year-on-year in January, although higher than the median 2.3 percent expected in a poll of 11 economists by the Wall Street Journal.
The increase in consumer price index (CPI) was mainly driven by a 3.7 percent rise in food prices last month, during which both the Western and Chinese New Year holidays were celebrated.
China’s CPI, a main gauge of inflation, rose by 2.6 percent in 2013, unchanged from 2012 and well below the 3.5 percent target set by the government in the world’s second-biggest economy.
Inflation in the country has slowed markedly since 2011, when annual CPI spiked to 5.4 percent, and maintaining growth in the face of domestic and overseas economic woes has become a higher priority for Beijing.
US stocks defied disappointing retail sales and jobless claims data on Thursday to make modest gains, with the Dow Jones Industrial Average finishing up 63.65 points or 0.40 percent to 16,027.59.
The broad-based S&P 500 tacked on 10.57 points (0.58 percent) to 1,829.83, while the tech-rich Nasdaq Composite Index jumped 39.38 points (0.94 percent) to 4,240.67.
US retail sales unexpectedly fell 0.4 percent in January in the second straight monthly decline, according to the Commerce Department.
The Labor Department reported weekly first-time claims for unemployment insurance rose to 339,000 from 331,000 the previous week, slightly more than expected but in line with the longer-term trend.
Michael James, managing director of equity trading at Wedbush Securities, said investors saw the data as “primarily weather-related” after a streak of severe winter weather has depressed economic activity.
In currency trades the dollar fetched 102.32 yen early Friday, slightly up from 102.15 yen in New York Thursday afternoon.
The euro bought $1.3675 and 139.75 yen against $1.3678 and 139.74 yen.
While Wall Street brushed off the disappointing US economic data, oil prices were mixed in Asian trade as investors saw the figures as pointing towards weakening demand in the world’s top oil consumer.
New York’s main contract, West Texas Intermediate (WTI) for March delivery, eased eight cents to $100.27 in mid-morning Asian trade.
Europe’s benchmark contract Brent North Sea crude for April was up four cents at $108.56 on its first day of trading.
