“The dollar thundered back to life augmented by startlingly positive US (growth) and labour market data,” said Stephen Innes, head of Asia-Pacific trading at OANDA.
“Also, investors were quick to put the recent North Korean flair up in the rear view mirror as haven assets lost their endearment and US equity markets rebounded.”
The weak yen supported Japanese exporters, with Tokyo’s Nikkei ending the morning 0.7 percent higher, while Sydney added 0.5 percent and Singapore gained 0.6 percent. Wellington and Taipei were also higher.
Shanghai gained 0.1 percent as official figures showed a rise in Chinese factory activity in August but not strong enough to ease concerns about the world’s number two economy, which is growing at its slowest pace in more than a quarter of a century.
Hong Kong eased 0.6 percent, with profit-takers also moving in after enjoying six days of gains in the previous seven trading days.
On oil markets both main contracts edged down and continue to be buffeted by worries over Harvey, which has seen dozens of refineries shut down in the crude-rich Gulf and dented demand for the commodity.
With refineries shut down there is no demand for crude to be processed but the storm has led to a rise in petrol prices across the United States.
Analysts said the release next week of US inventory data could reveal a big jump in stockpiles as there are fewer places for the oil that has been pumped to be refined.
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