Japanese shares hit their highest close in almost two years on Monday as investors dived into real estate and retail stocks on strong spending growth data, and other Asian stock markets also firmed.
The dollar edged up to 109.28 yen, from around 109.10 yen in late U.S. trade. The weaker yen, on top of upbeat economic data that points to stronger growth this year, has enticed investors to buy Japanese stocks.
U.S. crude oil hit a six-week high of $36.25 per barrel as concerns continued over shrinking supplies, while gold rose from New York levels, but was put in the shade in the precious metals market by platinum, which traded at levels not seen in 24 years.
Financial bookmakers predicted London's FTSE 100 index to open 16 points higher, with Paris's CAC 40 seen gaining 10 to 16 points at the open.
The Nikkei 225 average rose 2.08 percent to 11,271.12, its highest close since June 2002, adding to a 2.10 percent gain on Friday. MSCI's broadest index of shares elsewhere in the region rose 0.68 percent.
"At first, investors were targeting real estate firms and banks -- those that lagged behind the market's recent gains," said Yasuo Ueki, an equities analyst at Poko Financial Office.
"But now, buying has extended to broad-based shares after last week's key economic data confirmed a steady economic recovery, including in personal spending," Ueki said.
Investors pushed up Mitsui Fudosan Co Ltd, the country's biggest property developer, 5.8 percent while Japan's second-biggest retailer, Aeon Co Ltd rose 5.3 percent.
Average spending by Japanese wage-earner households rose a real 3.4 percent in January from the same month a year earlier -- the third straight month of gains -- government data showed on Friday. Industrial production rose a better-than-expected 3.4 percent in January. The data came on top of figures that showed the Japanese economy was growing at its fastest clip in 13 years.
Adding to the feel-good factor, Tokyo traders said selling pressure from institutions ahead of the March 31 book closing had subsided.
"Some players feel this is the last buying opportunity and that they could not afford to pass it up," said Hiroichi Nishi, general manager of equity marketing at Nikko Cordial Securities Inc.
CRUDE OIL CONCERNS
The euro gave up some early Asian gains to trade at $1.2495, from $1.2530. Traders said expectations that the European Central Bank would cut interest rates this week had eased.
U.S. crude oil hit a six-week high of $36.25 before falling slightly to $36.15 a barrel, as traders remained concerned over shrinking supplies of petroleum products at a time when U.S. crude oil stocks are already near their lowest in three decades.
Gold recovered to $398.20 an ounce, from $396.10 last quoted in New York. But it was platinum that attracted investors, trading at $885 an ounce after touching a high of $895, a level not seen in 24 years, partly on supply fears.
Australian shares started the week well, with the benchmark S&P/ASX 200 index up 0.6 percent at 3,381.4, its highest close in 21 months.
Mining giant BHP Billiton led the way as investors took a shine to a $9 billion deal for the world's largest diversified miner to sell more iron ore to China. BHP Billiton rose 1.4 percent to A$12.43.
Boosted by the Nikkei's gains, Hong Kong's Hang Seng Index gained 0.45 percent as investors anticipated strong results from global bank HSBC Holdings Plc later in the day.
HSBC, which rose 0.39 percent, is expected to report after the market close a 34 percent rise in pre-tax profit to US$12.91 billion, fueled by the acquisition of U.S. consumer finance company Household International, according to a Reuters poll.
Taiwan's TAIEX index rose 2.04 percent to its highest close in more than three years, extending a rally that has added 17 percent to the index since the beginning of the year.
Daily turnover on the Taipei market hit its highest in nearly four years at T$233.53 billion, from T$169.82 billion in the previous session. South Korean markets were closed for a holiday.
U.S. stocks ended barely changed on Friday, with the Dow Jones industrial average up 0.04 percent and the technology focused Nasdaq Composite Index down 0.14 percent.
The dollar edged up to 109.28 yen, from around 109.10 yen in late U.S. trade. The weaker yen, on top of upbeat economic data that points to stronger growth this year, has enticed investors to buy Japanese stocks.
U.S. crude oil hit a six-week high of $36.25 per barrel as concerns continued over shrinking supplies, while gold rose from New York levels, but was put in the shade in the precious metals market by platinum, which traded at levels not seen in 24 years.
Financial bookmakers predicted London's FTSE 100 index to open 16 points higher, with Paris's CAC 40 seen gaining 10 to 16 points at the open.
The Nikkei 225 average rose 2.08 percent to 11,271.12, its highest close since June 2002, adding to a 2.10 percent gain on Friday. MSCI's broadest index of shares elsewhere in the region rose 0.68 percent.
"At first, investors were targeting real estate firms and banks -- those that lagged behind the market's recent gains," said Yasuo Ueki, an equities analyst at Poko Financial Office.
"But now, buying has extended to broad-based shares after last week's key economic data confirmed a steady economic recovery, including in personal spending," Ueki said.
Investors pushed up Mitsui Fudosan Co Ltd, the country's biggest property developer, 5.8 percent while Japan's second-biggest retailer, Aeon Co Ltd rose 5.3 percent.
Average spending by Japanese wage-earner households rose a real 3.4 percent in January from the same month a year earlier -- the third straight month of gains -- government data showed on Friday. Industrial production rose a better-than-expected 3.4 percent in January. The data came on top of figures that showed the Japanese economy was growing at its fastest clip in 13 years.
Adding to the feel-good factor, Tokyo traders said selling pressure from institutions ahead of the March 31 book closing had subsided.
"Some players feel this is the last buying opportunity and that they could not afford to pass it up," said Hiroichi Nishi, general manager of equity marketing at Nikko Cordial Securities Inc.
CRUDE OIL CONCERNS
The euro gave up some early Asian gains to trade at $1.2495, from $1.2530. Traders said expectations that the European Central Bank would cut interest rates this week had eased.
U.S. crude oil hit a six-week high of $36.25 before falling slightly to $36.15 a barrel, as traders remained concerned over shrinking supplies of petroleum products at a time when U.S. crude oil stocks are already near their lowest in three decades.
Gold recovered to $398.20 an ounce, from $396.10 last quoted in New York. But it was platinum that attracted investors, trading at $885 an ounce after touching a high of $895, a level not seen in 24 years, partly on supply fears.
Australian shares started the week well, with the benchmark S&P/ASX 200 index up 0.6 percent at 3,381.4, its highest close in 21 months.
Mining giant BHP Billiton led the way as investors took a shine to a $9 billion deal for the world's largest diversified miner to sell more iron ore to China. BHP Billiton rose 1.4 percent to A$12.43.
Boosted by the Nikkei's gains, Hong Kong's Hang Seng Index gained 0.45 percent as investors anticipated strong results from global bank HSBC Holdings Plc later in the day.
HSBC, which rose 0.39 percent, is expected to report after the market close a 34 percent rise in pre-tax profit to US$12.91 billion, fueled by the acquisition of U.S. consumer finance company Household International, according to a Reuters poll.
Taiwan's TAIEX index rose 2.04 percent to its highest close in more than three years, extending a rally that has added 17 percent to the index since the beginning of the year.
Daily turnover on the Taipei market hit its highest in nearly four years at T$233.53 billion, from T$169.82 billion in the previous session. South Korean markets were closed for a holiday.
U.S. stocks ended barely changed on Friday, with the Dow Jones industrial average up 0.04 percent and the technology focused Nasdaq Composite Index down 0.14 percent.
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