Asian indices rally; dollar slips to 5-month low

Asian stocks rallied to their highest in over 2 years in response to optimism on the U.S. economy, with Wall Strret gaining almost 2% on Friday. The dollar dipped to five-month lows against the euro.

Economic reports on U.S. durable goods orders and home sales were mixed, but a rise in August’10 business spending lifted the US markets.

Japan's Nikkei average is up 1.36% at 9,600.54, with gains capped by the yen's continued strength. Shares of consumer lenders plunged reports of struggling Takefuji Corp preparing for bankruptcy protection.

Hang Seng is trading with gains of 1.28%, up at 22,401.98 and China’s SSE Composite is up 0.95% at 2,616.06.

Seoul shares also posted gains, but shares of Hyundai Motor remained under pressure, after South Korea's top carmaker announced it was recalling 139,500 Sonata sedans sold in the United States. Kospi is trading up 0.41% at 1,854.16.

Strait Times is up 0.89% to 3,121.43; Taiwan’s Taiex is up about half a percent at 8,203.65 while Australian shares are up 1.4% to 4,666.30.