By Alun John

HONG KONG (Reuters – Asian shares gained on Friday due to the embers from a strong Wall Street day that also supported risk-friendly currency and hurt the safe haven yen. But worries about China’s economy hampered gains.

The oil prices also tested new multi-year records, which was a deterrent to growth in the north Asian energy-importing market, but good news in Southeast Asia for those markets that export energy.

MSCI’s Asia-Pacific broadest index, which excludes Japan, gained 0.6% and rose by 1.08%.

Stocks in the United States surged overnight following data showing a drop in unemployment claims, lower-than expected factory gate price inflation, and beating forecasts from four major U.S. bank consumer banks.

While the jump was 1.57% and the climb was 1.46% respectively, analysts stated that the leapt at 1.68%. However, Asia seemed unlikely to catch these gains.

Analyst at IG Markets Kyle Rodda stated that while US gains will improve sentiment in pockets of investors, the reality is that some regional worries have overtaken positive sentiment from U.S. markets.

“My feeling is that the markets in Asia will remain volatile and mixed.”

Chinese blue chips fell soon after the bell but were still flat when it ended. Hong Kong shares, however, returned from a one day break to open higher, before closing flat.

The, which tracks U.S. stock options, rose 0.15%.

An important data dump is due from China Monday. China, the second-largest country in the world, will release third-quarter GDP figures and monthly activity numbers.

We expect that GDP growth will slow to 4.6% in the third quarter, down from 5.6% in the previous quarter, due to persistent weakness in consumption, COVID outbreaks and the diminishing of the low-earlier base. Barclays (LON: ) Analysts in the note

China’s September factory gate inflation rose to an all-time high due to rising commodity prices. But, low consumer prices slowed down the rise. Policymakers must choose between supporting and fostering producer prices.

On Friday, currency markets saw the dollar rise to an almost three-year high against yen. A dollar purchased 113.89 Japanese yen for 113.89 dollars, its highest level since December 2018.

The greenback was measured against a basket currencies on the day. At 94.00 it fell slightly and is now in its first week of declines versus other major currency pairs since January.

After trending down this week after Tuesday’s 4.month-high of 1.631%, the benchmark yield was at 1.5247%.

The Australian dollar suffered a temporary dip on Friday as it slid to its monthly high from a day earlier. CBA analysts explained that the lower dollar and stable commodity prices were responsible for this.

A barrel of oil gained 0.3% to $81.82 per barrel. This is close to Monday’s 7-year record of $82.18. The barrel price rose 0.58 to $84.50, close to a three year high. [O/R]

The bitcoin market is currently trading near $57,100. It touched a five month high of $58,550 last Thursday. On Thursday, it traded at around $57,000. Bitcoin bulls believe that the possibility of the cryptocurrency surpassing April’s high of $64,895.22 over the next months.