Asian markets surge on strong US consumer data [Video]

Japanese stocks surged and markets across Asia started strong on Friday, tracking substantial gains on Wall Street after encouraging US retail sales data reassured investors about the health of the world’s biggest economy.

The key Nikkei 225 index added nearly three percent following rallies on Wall Street, continuing a bullish run after stocks in Tokyo crashed Monday on worries about the US economy and a stronger yen.

Encouraging economic growth in Japan had already spurred the market on Thursday.

“Stabilising market conditions mean that the BoJ could again consider further policy normalisation,” Alvin Tan from RBC Capital Markets said in a note.

“But the shock of the recent Japan equities tumble and yen surge means that another hike likely won’t be on the table in the BoJ’s September meeting.”

The dollar rose more than one percent against the yen after the retail sales report was released.

A weaker-than-expected labor market …