TOKYO: Asian shares climbed on Friday after upbeat US corporate earnings, solid US economic data, and an unexpected uptick in euro zone business sentiment helped ease concerns that the global economy was losing momentum.
Japan's Nikkei share average rose 1.4 percent while MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.1 percent.
Results from Caterpillar Inc and 3M Co reassured investors that companies with large overseas revenue streams could deliver solid profits, despite concerns about global economic growth.
The markets ignored positive earnings earlier this month, when the world's share prices hit multi-month lows, overwhelmed by fears that sluggishness in Europe and Asia could deal a severe blow to the US economy as well.
But a steady flow of solid earnings helped to ease many such concerns for now.
With 177 of the S&P 500 companies having posted third-quarter results, 69.5 percent have beaten expectations, better than the 67 percent beat rate over the past four quarters, and higher than the 20-year average of 63 percent, Thomson Reuters data showed.
"The markets had fallen on sentiment rather than on facts. And the sentiment is coming back," said Soichiro Monji, chief strategist at Daiwa SB Investments.
New claims for US unemployment benefits also held below 300,000 for a sixth straight week last week.
In the euro zone a survey showed businesses performed much better than anyone expected this month, even though it also pointed to strong deflationary pressure in the region.
Wall Street shares rose on Thursday as a result, with S&P 500 index hitting two-week highs, although their gains were pared back in late session on news of the first Ebola case seen in New York.
US debt prices fell, lifting their yields. The 10-year notes yield hit a two-week high of 2.300 percent on Thursday and last stood at 2.277 percent.
The US dollar also rose, reaching as high as 108.36 yen , its highest level in two weeks and up about 3.0 percent from this month's low.
The euro drew some support from the surprise strength in the euro zone data, but was still near a two-week low of $1.2614 hit on Thursday. It last stood at $1.2649.
Oil prices rebounded on news Saudi Arabia cut supply to the market in September, even though its overall production grew month on month, and on strong economic data from Europe and China.
Brent crude oil traded at $86.68 per barrel, after gaining nearly 3 percent on Thursday.
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