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Nikkei leads Asian shares higher as solid U.S. GDP boosts dollar

Published 10/30/2014, 09:56 PM
Updated 10/30/2014, 09:57 PM
Nikkei leads Asia shares higher
US500
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JP225
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Investing.com - Tokyo led Asian markets higher in early Friday trading, thanks to a brighter outlook for the U.S. economy and a stronger dollar.

A report in Japanese business daily the Nikkei that said the country's $1.2 trillion Government Pension Investment Fund plans to increase investment in domestic and foreign stocks to 25% each of a portfolio that has until now centered on Japanese bonds also helped to stoke buying sentiment.

Without citing where it obtained the information, the paper said stocks will account for half of the GPIF's new portfolio, excluding cash and short-term assets. The daily also said the fund will implement the new allocation ratios over time as it eyes market trends.

The Nikkei 225 rose 1.4% Australia's S&P/ASX200 was up by 0.4%, and the New Zealand NZX40 was up 0.5%.

Overnight, U.S. stocks rallied on news the U.S. economy expanded at a faster clip in the third quarter than investors were expecting.

The Dow 30 rose 1.01%, the S&P 500 index rose 0.62%, while the NASDAQ Composite index rose 0.37%.

The Commerce Department reported earlier that the U.S. gross domestic product grew at an annual rate of 3.5% in the three months to September, beating forecast for 3% growth.

While the report stoked expectations that the Federal Reserve remains set to hike interest rates in 2015, stocks rose on sentiments that business will be on the rise next year despite rising borrowing costs.

On Wednesday, the Federal Reserve said it was ending its monthly bond-buying program due to improvements taking place in the labor market.

Elsewhere, the Labor Department reported earlier that the number of individuals filing new claims for jobless benefits rose by 3,000 to 287,000, confounding market forecasts for a decline to 283,000, though stocks shrugged off the data.

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