Most Asian share markets notched up gains on Friday after another powerful performance by Wall Street, while Japanese economic data impressed and the dollar briefly broke the 105 yen barrier for the first time in five years.
The greenback was up at 104.80 yen on Friday having been as far as 105.05. Option-related offers are crowded around the 105 level making it tough resistance.
The euro also hit a five-year high of 144.10 yen, and was last at 143.95. The single currency was firmer on the dollar at $1.3737, though still off last week’s high of $1.3811.
Shanghai made the running with a rise of 1.7 percent .SSEC as money rates eased and China set its yuan at an historic high. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS advanced 0.8 percent.
European shares were expected to extend the cheer, with Britain’s FTSE 100 .FTSE, Germany’s DAX .GDAXI and France’s CAC 40 .FCHI seen up as much as 0.9 percent, according to financial bookmaker IG.
Tokyo’s Nikkei .N225 eked out a slim gain, logging a six-year closing high. The index remains 55.6 percent higher for the year, its best annual performance since 1972, driven by Japan’s aggressive fiscal and monetary stimulus.
The effort seems to be working with figures out Friday showing Japanese manufacturing activity expanding at the fastest clip in more than seven years while firms added workers at the quickest pace in over six years.
Other data showed Japan’s core consumer price inflation in November running at a five-year high, marking steady progress towards ending a decade-and-a-half of grinding deflation.