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Asian shares set for weekly gain as outlook improves

Manufacturing surveys from China and the United States raise hopes that the global growth outlook is improving

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Reuters Singapore
Last Updated : Jan 20 2013 | 6:29 AM IST

Asian shares marked time on Friday but were on course for a weekly gain of nearly 2%, after manufacturing surveys from China and the United States raised hopes that the global growth outlook is improving at last.

The euro was also enjoying a positive week, despite data on Thursday pointing to the euro zone sliding into its deepest recession since 2009, with the currency standing up around 1% on last Friday's close on optimism that a funding deal for debt-choked Greece will ultimately be agreed.

Activity was subdued across financial markets on Friday, with exchanges in Japan and the United States closed for holidays.

MSCI's broadest index of Asia Pacific shares outside Japan was little changed, with a rise of 0.2% in South Korean shares balanced by a similar percentage decline in Australian stocks.

The MSCI index was up around 1.9% on the week.

The euro eased about 0.1% to around $1.2870 and was steady versus the yen, not far below a six-and-a-half month high against the Japanese currency scaled in the previous session.

Thursday's HSBC flash Manufacturing Purchasing Managers Index (PMI) for China, which showed expansion in the factory sector accelerating for the first time in 13 months, gave a broad lift to riskier assets such as commodities, with oil, copper and gold all on course for weekly gains.

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First Published: Nov 23 2012 | 6:17 AM IST

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