In This Article:
By Kevin Buckland
TOKYO, Sept 15 (Reuters) - Asian stocks rose strongly on Friday, extending a global equity rally, after better-than-expected Chinese economic data added to the good vibes from expectations that tightening campaigns by the world's biggest central banks were close to over.
The dollar stuck close to a six-month peak from overnight against major peers, buoyed by robust U.S. economic data, while the euro sagged following the European Central Bank's signal that Thursday's rate hike was probably the last this cycle.
Crude oil hit a fresh 10-month top.
MSCI's broadest index of Asia-Pacific shares rallied 0.84%.
Japan's Nikkei jumped 1.33% to a two-month high.
Hong Kong's Hang Seng added 1.2%, and mainland Chinese blue chips rose 0.2%, flipping from early small losses.
Australia's stock benchmark surged 1.75%.
U.S. S&P 500 futures pointed to a 0.17% rise, after the cash index rallied 0.84% on Thursday.
Chinese gauges of retail sales and industrial output for August handily topped economists forecasts, providing additional tailwinds from the central bank's decision overnight to cut banks' reserve ratio requirements for a second time this year.
It was not all blue skies though, with data earlier in the day showing the biggest drop in new home prices in 10 months - another reminder of the property sector's struggles, after Moody's cut the sector's outlook to negative on Thursday.
"It's certainly not a definitive turning point, but perhaps we're seeing green shoots in China's economy," said Kyle Rodda, senior market analyst at brokerage firm Capital.com, calling the retail sales figures "particularly heartening."
"It's a nice little shot in the arm to end the week" for stock markets, but "I think investors will be searching for more in terms of support from the central government, and ultimately, more fiscal support is what's required to boost demand," he said.
The overall improving economic outlook bolstered the Chinese yuan, which gained about 0.3% to 7.2709 per dollar in offshore markets.
Australia's dollar, which often trades as a proxy for the country's top trading partner, rose 0.3% to $0.6460.
However, a gauge of the U.S. dollar against six of its biggest developed-market peers stuck close to the six-month peak it reached overnight, buoyed primarily by the euro's steep overnight slide.
The so-called U.S. dollar index edged down 0.08% to 105.33, after hitting the highest since early March at 105.43 on Thursday.