HONG KONG: Asian markets were broadly higher on Friday, boosted by strong bond auctions in Italy and Spain as well as soothing words from the European Central Bank on the state of the region's finances.
The euro was also holding onto strong gains made in late Thursday trade while dealers shook off weak data from the United States.
Tokyo was 1.05 percent higher by the break, Hong Kong gained 0.31 percent, Sydney was 0.34 percent higher and Seoul climbed 0.52 percent while Shanghai dipped 0.32 percent.
Confidence was boosted after Spain successfully passed its first bond test of 2012, locking in sharply lower borrowing rates and raising far more money than first planned.
Investors flocked to the issue and Rome took advantage of the cheaper rates to raise about 10 billion euros ($13 billion) -- twice the original target.
And Italy raised 12 billion euros, with borrowing rates for short-term funds down sharply in a sign of improving market confidence.
The auctions provided much relief to investors who have seen the borrowing costs of Italy and Rome sit around levels considered unsustainable for governments to service their debts.
The two countries are considered most at risk of needing a bailout, which many fear could tear the eurozone apart.
Also on Thursday European Central Bank chief Mario Draghi said the bank's decision last month to make unlimited liquidity available to eurozone banks was helping to stabilise the region's crisis-ridden economy.
The ECB in January announced it would make available to eurozone banks as much as they wanted for a period of three years at super-cheap rates.
"We have seen several... positive developments. The more time that passes since we had the first three-year long-term refinancing operation, the more we see signs that it has been an effective policy measure," Draghi said.
He was speaking after the bank said it would keep interest rates on hold at one percent, suggesting officials are not too concerned about the state of the economy.
The rare day of good news lifted the euro to above $1.28 late Thursday, days after sinking to a 16-month low $1.2662. In early Asian trade it bought $1.2817.
It was also at 98.43 yen, compared with 98.38 yen late in New York Thursday, while the dollar was flat at 76.79 yen.
"Despite the continued threat of political-event risks, the potential for further ratings downgrades and the upcoming (European Union) summits -- all of which have the potential to provide substantial headwinds -- the number of threats investors face appears to have subsided from the previous quarter," said Barclays Capital in a note to clients.
Markets brushed off less upbeat figures from the United States, which showed weekly jobless claims, an indicator of the pace of layoffs, rose to 399,000 after steadily falling for several weeks.
The figures raised the possibility that the recent improvement in the jobs sector, which has seen the unemployment rate consistently fall and more people going back to work, may have been temporary.
Also, retail sales in December were flat from the month before, confirming worries that the holiday shopping season was clouded by reticent shoppers and heavy discounting.
New York's main contract light sweet crude for delivery in February gained 21 cents to $99.31 per barrel and Brent North Sea crude for February delivery was up 4 cents at $111.30.
Gold was at $1,637.00 an ounce at 0320 GMT, against $1,652.72 late Thursday.
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