Asian markets rise, yen weakens on Japan stimulus

HONG KONG: Asian markets mostly climbed on Friday after data showed the US economy grew more than first expected in the third quarter while traders remain upbeat a deal will be made on averting the fiscal cliff.

The yen eased further against the dollar and euro after the Japanese government announced a huge spending spree to kickstart the economy just weeks before a general election.

Tokyo was 0.60 percent higher thanks to the weaker yen, Hong Kong added 0.13 percent, Sydney climbed 0.61 percent, Seoul added 1.11 percent and Shanghai was flat.

The US Commerce Department said Thursday the economy grew 2.7 percent in the three months to September, faster than the 2.0 percent first estimated, reflecting in part increases in government spending and private inventory investment.

However, growth in consumer spending, which accounts for 70 percent of output, was revised down to 1.4 percent, just slightly above the second-quarter pace.

Also, jobless claims fell back to 393,000 in the most recent week, the Labor Department said Thursday.

The figures provide a general view that the country is gradually getting back on its feet, which will have a positive knock-on effect for the global economy.

Lawmakers in Washington are locked in tough talks on averting the fiscal cliff of tax hikes and spending cuts to come into effect on January 1, which could tip the economy back into recession.

But while Republican House Speaker John Boehner has rejected as "ridiculous" President Barack Obama's first proposal to cut the country's deficit, investors are broadly confident a deal will be achieved by the end of the year.

Wall Street's main indexes finished in positive territory for a second straight day. The Dow was up 0.28 percent, the S&P 500 gained 0.43 percent and the Nasdaq added 0.68 percent.