HONG KONG, Oct. 15 Reuters - The Chinese shares edged upward on Friday, building on Wall Street's positive lead after a set of strong U.S. corporate earnings, although worries about the Chinese economy capped gains.
Oil prices were at multi-year highs, a drag on growth in energy-exporting markets in Southeast Asia but good news for some energy-importing markets in north Asia.
In the futures markets, indexes suggested the rally was set to follow into European markets. Futures of Euro Stoxx 50 in the Panregion were up 0.36% and FTSE futures grew 0.31%. Futures of U.S. stock gained 0.3%.
Analysts attributed the gain in Asia to the U.S. rally.
The Japanese Nikkei rose 1.56% with analysts also pointing to gains on Wall Street boosting local tech names.
U.S. shares powered ahead overnight after data showed a fall in new claims for unemployment benefits, less than expected factory gate price inflation and forecast-beating results for the four largest U.S. consumers banks.
The stagflation narrative had some cold water thrown over it, said Kyle Rodda, an IG markets analyst.
Chinese shares rose more cautious than others with blue chips up 0.43% and the Shanghai Composite Index gaining 0.46%, as investors balanced expectations of policy easing against worries of a slowing economy ahead of quarterly GDP data due Monday.
We expect GDP growth to shrink from 5.6% last quarter year-on-year to 4.6% in the third quarter, in view of persistent weakness in consumption and services amid repeated COVID outbreaks, and the fading of the low year-earlier base.
In the currency markets, the dollar rose again on Friday to a near three year high on the yen with one dollar buying 114.07 yen, the most since late 2018 - increase.
The dollar index, which measures the US dollar against a basket of currency pairs, was marginally higher on the day at 93.97 and set for its first weekly decline versus major peers since the start of last month, after losing a little ground to sterling and the Euro.
The yield on benchmark 10 year Treasury notes was 1.5301%, slightly higher on the day, after trending downwards this week from the four month high of 1.631%.
U.S. crude gained 0.82% to $81.98 barrel, but still near its seven-year high of $82.18 on Monday. Brent crude rose 0.9% to $84.78 per barrel, around its three-year high hit Monday.
On Friday, Bitcoin also hit a six-month high of $60,000, close to the record hit in April, as traders became increasingly confident U.S. regulators would approve launch of an exchange trading fund based on its futures contracts.