Nikkei Hits New 15-Year High, Upbeat Data Lifts Dollar

Tokyo: Japanese stocks rose to a fresh 15-year high on Friday and the dollar was on the front foot again on upbeat US data, but continuing uncertainty over the Greek debt negotiations weighed on the euro.

US weekly jobless numbers released overnight proved better than expected, diffusing some of the pressure on the dollar that followed dovish-sounding minutes from the last Federal Reserve policy meeting.

The minutes had dented expectations for an early interest rate hike by the Fed, driving US debt yields and the dollar lower.

The greenback was also supported as the ebb and flow of confidence in the difficult talks between Greece and its lenders capped the euro.

The common currency was encouraged earlier on Thursday after Greece was seen to have caved in after weeks of haggling and asked for a six-month extension for its loans. But the euro's rise fizzled after Germany snubbed the proposal, saying it was "not a substantial solution."

Immediate focus is on the euro zone finance ministers' meeting later on Friday and whether differences can be ironed out then.

"The market appears to be relieved for now after Greece asked for a loan extension. But Greece is not promising fiscal austerity and Germany has shown scepticism," said Masafumi Yamamoto, market strategist at Praevidentia Strategy in Tokyo.

"The market is used to seeing this by now, but if a deal isn't reached today, the euro could face selling pressure and dollar/yen could also see the same as risk appetite will be hurt," he said.

The dollar was up 0.1 per cent at 119.02 yen, pulling away from an overnight low of 118.42. The euro slipped 0.1 per cent to $1.1361, nudged down from the previous day's peak of $1.1450.

Lifted by a weaker yen, Japan's Nikkei climbed to a fresh 15-year high and was last up 0.4 per cent. Australian shares shed 0.1 per cent.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.2 per cent, with many of the regions' markets were closed for the Lunar New Year holiday, including China, Malaysia, Singapore, Taiwan and South Korea.

In commodities, US crude oil edged up 0.2 per cent to $51.27 a barrel after a buildup in crude inventories reported by the US government was less than expected.