By Lisa Twaronite
TOKYO (Reuters) - An index of Asian shares rose to fresh seven-year highs on Friday, on track for a weekly gain after Nasdaq rose to a record, while the dollar stuck to recent ranges after more lacklustre U.S. economic data.
MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2 percent, after marking its highest level since January 2008. For the week, it added 0.4 percent.
Japan's Nikkei stock index was down 0.7 percent after hitting a 15-year peak on Thursday, but was still up nearly 2 percent for the week.
"Since the index has risen too fast, a short-term correction is likely," said Hikaru Sato, a senior technical analyst at Daiwa Securities.
On Wall Street, the Nasdaq pushed above its previous record set in March 2000, the height of the dot.com boom.
But week readings on U.S. jobless claims, manufacturing and home sales contrasted with the shining share market performance.
A larger-than-expected 11.4 percent drop in new home sales in March, together with disappointing global factory data, rekindled doubts about whether the economy is strong enough for the Federal Reserve to raise interest rates this year as widely expected, and gave investors an excuse to reduce long positions in the dollar.
"Clearly the market is pushing back expectations of a Fed hike," Mitul Kotecha, head of FX strategy, Asia-Pacific for Barclays in Singapore, said on a visit to Tokyo this week. "It's certainly something that clients are nervous about."
While a June increase in U.S. interest rates looks unlikely, he said the Fed is still poised to hike later this year depending on economic data.
"Any weakness in the dollar's ascent will be temporary, with strengthening likely toward the year-end," he said.
The dollar was steady on the day at 119.56 yen, below its overnight high of 120.10 yen.
The greenback bought $1.0789 against the euro, which was down about 0.3 percent on the day but above overnight its low of $1.0666, after rebounding on signs that Greece was making progress in securing fresh funds.
German Chancellor Angela Merkel said on Thursday everything must be done to prevent Greece running out of money before it reaches a cash-for-reform deal with its international creditors.
Oil prices were on track for weekly gains but came off the overnight highs after Saudi Arabia and its allies continued bombing missions in Yemen that raised concerns about the security of Middle East oil supplies.
Brent crude touched a high of $65.58 on Thursday, its highest since December, but was last down 0.5 percent on the day at $64.56 a barrel. U.S. crude was down about 0.6 percent at $57.40.
Gold was poised for its third straight weekly drop amid uncertainty over when the Fed Reserve will begin to hike rates. Spot gold was slightly lower on the day at $1,191.20 an ounce.
(Editing by Kim Coghill)
