Asian Shares Surge: Nikkei Set for Best Week in Four Years

Asian shares are on track for a weekly gain with Japan's Nikkei poised for its best performance in over four years. Positive risk sentiment from Wall Street and strong U.S. economic data have allayed recession fears and lowered expectations for aggressive U.S. rate cuts, supporting steady markets.

Asian shares were headed for a weekly gain on Friday, with Japan's benchmark Nikkei poised for its best week in more than four years. This upbeat risk sentiment spilled over from Wall Street, while the dollar and U.S. Treasury yields held broadly steady.

Last week's market turmoil calmed this week after a raft of U.S. economic data dispelled recession fears in the world's largest economy and tempered expectations for aggressive U.S. rate cuts. "Our assessment is that the market fallout from the weak early August U.S. data was disproportionate," said Jonas Goltermann, deputy chief markets economist at Capital Economics.

Equity markets across Asia rose, with MSCI's broadest index of Asia-Pacific shares outside Japan advancing 1.3%. U.S. futures extended gains following a strong overnight session on Wall Street. S&P 500 and Nasdaq futures saw incremental rises, while EUROSTOXX 50 futures gained slightly. In commodities, oil prices edged lower but remained poised for a weekly gain.