(MENAFN- AFP) Asian markets rallied Friday and the dollar edged back towards 110 yen after the United States released forecast-busting economic growth data that soothes concerns about the global outlook.
Japanese stocks led the way as the weakening of the yen and a report that the country's vast national pension fund would double its domestic stock holdings offset another batch of poor indicators.
Tokyo climbed 1.73 percent, Hong Kong put on 0.70 percent, Shanghai added 0.23 percent, Sydney was 0.59 percent higher and Seoul tacked on 0.21 percent.
The US Commerce Department said the world's largest economy grew at an annualised 3.5 percent in July-September owing to stronger exports and defence spending. Expectations had been for a 3.0 percent rise.
Thursday's news came a day after the Federal Reserve brought an end to its stimulus programme following months of strong figures that show the economy is well on the track to recovery.
"Anything that helps to dispel fears that the US economic recovery is not on pace is encouraging for stock investors," Naoki Fujiwara, fund manager at Shinkin Asset Management, told Dow Jones Newswires.
However, the reading, coupled with upbeat comments about the jobs market from the Fed, stoked speculation that the bank could hike interest rates earlier than its timetabled mid-2015 date.
With rates widely expected to rise next year, traders have piled back into the dollar, pushing it back towards 110 yen.
In early Tokyo trade the greenback fetched 109.34 yen, compared with 109.22 yen in New York and 109.08 yen in Tokyo earlier Thursday.
Ian Shepherdson of Pantheon Macroeconomics said: "If growth continues at this pace -- we think it will -- the first Fed tightening could easily come in the spring, especially if wage gains start to pick up."
US stocks were also pushed higher, with the Dow surging 1.30 percent, while the S&P 500 added 0.62 percent and the Nasdaq gained 0.37 percent.
In Japan a report in the Nikkei business daily that the country's $1.2 trillion Government Pension Investment Fund plans to boost investment in domestic and foreign stocks outweighed more weak economic data.
Official figures showed Friday that September inflation slowed further, household spending plunged and unemployment rose, raising further questions about the government's recovery plan, which saw a painful sales tax hike in April.
On oil markets US benchmark West Texas Intermediate fell 13 cents to $80.99 while Brent crude was down 31 cents at $85.93.
Gold was at $1,202.54 an ounce, against $1,205.80 late Thursday.
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