Asian stocks rose, led by Japanese car and electronics makers, after reports on fewer US jobless claims and higher manufacturing boosted confidence in the recovery of the region's biggest export market. The yen weakened.
The MSCI Asia Pacific Index gained 0.3 per cent to 124.74 in Tokyo. The yen weakened versus 12 of 16 major counterparts as the US economic report curbed demand for Japan's currency as a refuge. Futures on the Standard & Poor's 500 Index were little changed.
Investor sentiment was lifted as fewer Americans filed for jobless benefits and consumer prices remained unchanged, signaling that the world's biggest economy will keep expanding without a pickup in inflation that would prompt higher interest rates. The optimism boosted shares of Asia's biggest exporters including Sony and Honda.
''The job market has been the slowest to pick up among key US economic data and its recovery should give a boost to the markets for the next two months,'' said Kim Yong Tae, a Seoul-based fund manager at Yurie Asset Management, which manages the equivalent to $US3.5 billion in assets.
First-time jobless applications dropped by 5000 to 457,000 in the week ended March 13, while consumer prices were unchanged in February, the first time they didn't increase since March 2009, US Labor Department figures showed.
Japan, Korea
Japan's Nikkei 225 Stock Average rose 0.7 per cent, leading Asia benchmarks higher. Sony, maker of the PlayStation 3 game machine, climbed 2.2 per cent. Honda Motor, which gets 44 per cent of its sales in North America, gained 1.9 per cent. Toyota Motor Corp., the world's largest automaker, added 1.7 per cent.
South Korea's Kospi index increased 0.4 per cent, led by Kia Motors Corp. after the nation's second-largest automaker said it will add a 100 million-euro ($US137 million) engine unit in Slovakia to boost production capacity in Europe. The stock climbed 4.4 per cent.
''The US economy is improving day by day, and so is the global economy,'' said Hiroichi Nishi, an equities manager at Nikko Cordial Securities Inc. in Tokyo. ''People are beginning to expect better corporate earnings.''
The yen traded at 90.44 to the dollar in Tokyo from 90.39 in New York Yesterday. It was at 123.11 yen per euro from 122.99.
The euro advanced against all of its 16 major peers after yesterday tumbling 1 per cent against the dollar, the most on a closing basis since Feb. 17, and 0.9 per cent against the yen.
Euro's slide
The euro slid this week versus 15 of its 16 major counterparts as Greece's prime minister set a one-week deadline for the European Union to craft a financial aid mechanism for the nation, challenging Germany and damping appetite for the 16- nation currency. The Swiss franc traded near its strongest level in 17 months against the euro as an official said policy makers can't prevent the currency's advance indefinitely.
European equity funds posted net outflows of $US1.06 billion in the week ended March 17, the biggest withdrawals since May 2009, EPFR Global said in a statement.
Malaysia's ringgit declined 0.2 per cent to 3.3080 per dollar as concern about Greece also cooled demand for emerging- markets assets. The Thai baht dropped 0.1 per cent to 32.34.
''The uncertainty about Greece is bugging the market, and until the issue is resolved, the market will be on the defensive,'' said Sim Moh Siong, a foreign-exchange strategist at Bank of Singapore.
Rising bond risk
The cost of protecting bonds from default increased in Japan and the rest of Asia, according to traders of credit- default swaps. The Markit iTraxx Asia index of 50 investment-grade borrowers outside Japan climbed 1 basis point to 94 basis points, Citigroup Inc. prices show. The Markit iTraxx Japan index rose 0.5 basis point to 123.5 basis points, according to Morgan Stanley prices. The increase suggests deteriorating perceptions of credit quality.
Copper for three-month delivery advanced 0.3 per cent to $US7514 a metric ton and aluminum declined 0.4 per cent to $US2268 a ton. Copper may climb next week on speculation the dollar will weaken, boosting the appeal of metals priced in the US currency, a survey showed.
Crude oil dropped for a second day in New York amid concern fuel demand in the US, the world's biggest energy consumer, was slipping and as a firmer dollar damped the investment appeal of commodities. Oil dropped 31 cents to $US81.90 a barrel after the dollar gained against the euro on speculation Greece may fail to secure financial assistance from the European Union.
