Asian shares rose Friday after U.S. stocks enjoyed their biggest rally in two weeks as earnings and economic reports reassured investors that the economy is continuing its recovery.
Nearly all stock markets in the region advanced, with Japan’s Nikkei 225 stock average jumping 1.8 per cent to 9,381.79 in broad-based gains.
Hong Kong’s Hang Seng index rose 0.9 per cent to 20,783.74, South Korea’s Kospi added 0.8 per cent to 1,749.03 and Australia’s S&P/ASX 200 rose 1.7 per cent to 4,447.3.
In New York on Thursday, the Dow Jones industrial average soared 201.77 points, or 2 per cent, to 10,322.30 in its biggest advance since it rose 274 points on July 7.
Earnings and economic reports gave investors confidence that the recovery in the world’s largest economy, while uncertain, is continuing. Caterpillar Inc., UPS Inc. and other companies beat analysts’ forecasts. A better-than-expected report on housing and encouraging signs of growth in Europe added to the upbeat mood.
Sentiment was solid ahead of the release later in the day of “stress tests” of European banks -- an effort by the European Union to calm worries about fallout from the continent’s debt crisis.
Higher metals prices sent resource-related issues higher around Asia. Major Australian miner BHP Billiton Ltd. rose 1.7 per cent, and Japan’s Inpex Corp. shot up 4.1 per cent.
Banks in Hong Kong were having a good day as well, with HSBC Holdings gaining 1.1 per cent.
The broader Standard & Poor’s 500 index rose 2.3 per cent to 1,093.67, while the Nasdaq composite index finished up 2.7 per cent at 2,245.89.
In currencies, the dollar fell to 86.82 yen from 87.14 yen late Thursday. The euro dropped to $1.2893 from $1.2897.
Benchmark crude for September delivery was down 16 cents at $79.14 a barrel in electronic trading on the New York Mercantile Exchange. The contract surged $2.74 on Thursday to settle at $79.30, a ten-week high.
