Asian stocks hit their highest level in 13 months on Thursday on signs the global economic recovery could be strengthening, while the dollar slid to a fresh one-year low as investor optimism eroded its safe haven appeal.
Major European stocks futures were up 0.6 percent, and the euro climbed to a one-year high above $1.4738, while U.S. equity futures were 1.7 percent higher, pointing to early gains in overseas equities.
Shares in Japan <.N225> rose 1.7 percent as the Bank of Japan upgraded its view on the economy and a Reuters Tankan survey showed the mood among Japanese manufacturers this month at a one-year high.
China shares also rallied, with Shanghai stocks jumping more than 2 percent, as a senior Chinese government economist said China's economy may regain double-digit annual growth in the fourth quarter. Stronger-than-expected growth though could also bring monetary tightening closer to the horizon.
Upbeat U.S. industrial output data on Wednesday raised hopes that the pace of the global economic recovery was accelerating and kept up pressure on the U.S. dollar as investors sought out riskier assets and higher-yielding currencies.
As the dollar hit a one-year low below 76.151 <.DXY> against a basket of currencies, the New Zealand dollar reached its highest level in more than a year above $0.7157 while the Australian dollar hit a fresh one-year high above $0.8751 as commodity prices gained ground.
The MSCI index of Asia Pacific stocks traded outside Japan was up 1.3 percent by mid-afternoon, its highest level since August last year.
In South Korea, authorities were spotted intervening for a second day after the won hit an 11-month high at 1,204.9.
Analysts say South Korea could be the first G20 country to tighten monetary policy, and strong sales reports from the country's top three department stores were a further sign that Asia's fourth-largest economy is picking up.
However, the Finance Ministry and the central bank offered differing views on how to manage the economy, underlining tension over the timing of an interest rate rise.
That took some steam out of the stock market and the KOSPI index <.KSII> ended up 0.7 percent. Korean December treasury bond futures meanwhile turned slightly higher after the Ministry of Finance reaffirmed its opposition to an early exit from economic stimulus and warned that the economy faced high uncertainty.
The finance minister's comments gave some relief to debt investors while the waning strength in stock markets also helped, said Kim Dong-whan at HI Investment & Securities.
Shares of Asian exporters were boosted by hopes that global demand may be improving with Japanese car maker Toyota Motor <7203.T> gaining 1.9 percent and electronics giant Sony Corp <6758.T> sprinting 2.4 percent. South Korea's Hynix Semiconductor <000660.KS>, the world's No. 2 memory chip maker, saw its share price advance 0.7 percent.
Gold rose to $1,023 an ounce, its highest level since March 2008, as the dollar fell and shares of gold miners were in demand, with Australia's Newcrest Mining
Commodities are looking good again, said Martin Angel, a dealer at Patersons Securities.
A lot of people are suggesting (gold) is a hedge against inflation, so a lot of people are looking around for gold stocks.
The oil price steadied above $72 a barrel and was underpinned by data showing a much sharper-than-expected drop in U.S. crude oil stockpiles last week.
Shares of Australian resources generally were boosted by optimism that global growth could be faster than forecast.
Top miners BHP Billiton
(Additional reporting by Yoo Choonsik in Seoul and Sonali Paul in Melbourne, Editing by Dean Yates)