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Asia markets mixed despite Wall Street gains

Hong Kong - Asian markets were mixed on Friday following strong gains on Wall Street, with Tokyo enjoying a significant bump due to the dollar's rise against the yen.

Tokyo rose 0.79% by the break and Shanghai climbed 0.20% in early trade, but Hong Kong slipped 0.33% in the morning, Seoul shed 0.48% and Sydney was down 0.20%.

The dollar - trading at its strongest levels in two weeks - rose into the ¥108 range, with risk sentiment lifted by encouraging Chinese manufacturing data and solid readings for eurozone business activity.

A weak yen is positive for Japanese exporters as it makes them more competitive abroad and inflates profits when repatriated.

"The weaker yen should naturally benefit Japan stocks, and help to highlight the fact that shares are looking cheap from many perspectives," said Mutsumi Kagawa, senior global strategist at Tokai Tokyo Research Centre.

In the US, stocks bolted higher Thursday following a series of mostly strong earnings reports from Dow members Caterpillar, 3M and others.

At the closing bell, the Dow Jones Industrial Average stood at 16 673.63, up 213.31 points (1.29%).

The broad-based S&P 500 gained 23.43 (1.22%) at 1 950.54, while the tech-rich Nasdaq Composite Index soared 69.95 (1.60%) to 4 452.79.

"The industrials are leading the market much higher," said Peter Cardillo, chief market economist at Rockwell Global Capital.

"The economic news was somewhat mixed. But we did have very good earnings."

The dollar was at ¥108.14 early on Friday, down from ¥108.27 in New York on Thursday afternoon but well above ¥107.24 in Tokyo earlier on Thursday.

The euro bought ¥136.83 against ¥136.93 in New York and ¥135.59 in Tokyo on Thursday.

The common European currency bought $1.2651 against $1.2647 in US trade.

On oil markets, prices resumed their downtrend in Asian trade. The US benchmark West Texas Intermediate for December delivery fell 74 cents to $81.35 a barrel and Brent crude for December declined 60c to $86.23.

Gold was at $1 229.75 an ounce against $1 240.97 late on Thursday.

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