Stronger U.S. data spurs world shares, yen falls

Thu Nov 28, 2013 5:06am EST
 
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By Richard Hubbard

LONDON (Reuters) - World shares rose toward six-year highs on Thursday and the yen languished at fresh lows against the euro and dollar after sentiment was boosted by a batch of strong U.S. economic data.

The signs of an improving U.S. jobs market and more cheerful consumers had spurred Wall Street to a record close on Wednesday, while reinforcing talk the Federal Reserve could start scaling back its stimulus, which supported the dollar.

"Markets have taken on board the view that (U.S.) rates are not going up next year even if they start tapering soon," said Simon Smith, chief economist at FXPro.

As the buoyant mood spread, Japan's Nikkei hit its highest close in nearly six years .N225, and Asian shares outside Japan .MIAPJ0000PUS rose 0.6 percent to reach a one-week high.

In Europe, Germany's DAX index touched an all-time high as trading got underway while the pan-European FTSEurofirst 300 index .FTEU3 was up 0.4 percent and on track to post its third straight month of gains.

MSCI's world equity index, which tracks share moves across 45 countries, gained 0.2 percent, reaching its best level since the start of 2008 .MIWD00000PUS.

DOLLAR DEMAND

In the currency markets, the dollar popped above 102.00 yen for the first time since May 29, while the euro traded just under $1.36 and came within striking distance of 139.00 yen, reaching its highest against Japan's currency since June 2009.   Continued...

 
Pedestrians are reflected on a stock quotation board at a brokerage in Tokyo November 26, 2013. REUTERS/Yuya Shino