Asian Markets Close Week With Push Higher

Asian shares rose on Friday, with South Korean stocks hitting a 21-month high, as upbeat United States manufacturing data and jobless claims raised hopes for a sustainable economic recovery.

But trading was light, with many investors in the region as well as in Europe and the United States away for the Good Friday holiday, and gains were limited by caution ahead of more United States job data later in the day. European and American markets reopen Monday.

Japan’s Nikkei average hit an 18-month peak for a fourth day, getting a lift from a rise in technology shares and automakers like Honda Motor and Toyota Motor after a jump in United States auto sales in March.

Shares of Japanese exporters drew additional support from the yen’s fall this week to a seven-month low against the dollar, while expectations for stronger Japanese earnings — which kick off next week with retailers — buoyed the overall market.

An index of American manufacturing activity in March rose to its highest level in over five and a half years, the Institute for Supply Management said on Thursday, while a Labor Department report showed initial weekly claims for jobless benefits fell more than expected.

The Nikkei closed up 0.4 percent at 11,286.09, an 18-month closing high.

Honda and Toyota each rose more than 1 percent on news that American auto sales jumped to a seven-month high last month.

South Korea’s index touched a high of 1,725.39, its loftiest level since late June 2008, as Hyundai Motor jumped 5.8 percent and Samsung Electronics rose 1.4 percent. The index later pared its gains to 0.3 percent.The dollar hit a seven-month high against the yen Friday, after government data showed the American economy created 162,000 jobs in March, the most in almost three years.

The unemployment report suggested that the American labor sector was on a gradual but steady recovery and should affirm expectations that the Federal Reserve would raise interest rates ahead of the European Central Bank, Bank of England and Bank of Japan.

“To the extent that the jobs data reflects continued improvement in the U.S. labor market it fits into our general view that the output gap in the U.S. is closing, albeit slowly,” said Marc Chandler, global head of FX strategy at Brown Brothers Harriman.

“This will allow the Fed to raise interest rates before the BoJ, E.C.B, and BoE.,” Mr. Chandler said. “We expect this to underpin the dollar on a medium-term perspective.”

In midday trading, the euro fell 0.7 percent against the dollar to $1.3486. Traders said global macro hedge funds sold euros following the jobs data.

Despite the euro’s weakness on Friday, the single euro zone currency was still up slightly on the week versus the dollar, recovering modestly from losses the last two weeks.

Against the yen, the dollar rose as high as 94.69 yen, the loftiest since late August, according to Reuters data. It was last at 94.65 yen up 0.9 percent on the day.

Dealers said there are options-related barriers near 95 yen, which have hindered the dollar/yen’s pair upside momentum.