Nikkei Surges Amid Positive Economic Sentiment

Asian shares are set for weekly gains, with Japan's Nikkei poised for its best week in over four years. This optimism is driven by positive U.S. economic data, which has alleviated recession fears. The dollar and U.S. Treasury yields remained stable while oil prices slightly dipped but aimed for a weekly gain.

Asian shares are on track for weekly gains, with Japan's benchmark Nikkei set for its best week in over four years. The positive risk sentiment stemmed from favorable economic conditions in the U.S.

This week saw calmer market conditions following positive U.S. economic data that dispelled fears of an imminent recession and tempered aggressive rate cut expectations. Jonas Goltermann, deputy chief markets economist at Capital Economics, noted that the markets had previously overreacted to weak U.S. data in early August.

Japan's Nikkei surged by 2.7%, aiming for a 7.6% weekly gain—its best performance since April 2020. The weaker yen contributed to these gains, along with steady U.S. Treasury yields and oil prices heading for a weekly increase.

(With inputs from agencies.)