SINGAPORE - Asia shares were headed for a weekly gain on Friday and Japan's benchmark Nikkei was poised for its best week in over four years as upbeat risk sentiment spilled over from Wall Street, while the dollar and U.S. Treasury yields held broadly steady.
MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.34% in early trade and was set to rise 1.3% for the week, while U.S. futures extended gains following a strong overnight cash session on Wall Street.Strong U.S. retail sales data and low weekly jobless claims were the latest shot in the arm for the positive risk mood, following a benign inflation report earlier this week that reaffirmed bets for imminent Fed rate cuts, but likely at a measured pace.
Friday's gains were in part helped by a weaker yen which last stood at 149.08 per dollar, languishing near a two-week low of 149.40 hit in the previous session and some distance away from last week's seven-month peak. In commodities, oil prices edged lower on Friday, though were set for a weekly gain as the upbeat U.S. economic data eased investor worries about a potential recession in the top oil consuming nation.