Investing.com - Stocks in Asia rose Thursday, led by solid gains in Japan after the dollar rose to a fresh six-year high against the yen.
The Nikkei 225 was up 1.0% after the dollar hit its highest mark against the yen since early 2008. The dollar rose to as high as ¥109.34 and was last at ¥109.14. It traded at ¥109.05 late Wednesday in New York.
Australia's S&P/ASX 200 was up 0.4% and Korea's KOSPI edged up 0.4%.
However, gains were tempered by caution over the pace of economic growth in China, where leaders are discussing replacing the central bank chief amid disagreements over the direction of financial policy. President Xi Jinping is considering removing Zhou Xiaochuan, the face of China's economy to markets globally, raising uncertainty about the extent to which Beijing feels it can afford to remake its economy.
Zhou has pressed for interest rate liberalization and other market reforms, but concerns that the economy might not meet its annual 7.5% growth target are growing as the year progresses. Earlier this week, Goldman Sachs cut its 2014 GDP forecast for China to 7.1% from 7.6%.
Overnight, U.S. stocks rallied on news that new homes in the U.S. far surpassed expectations, giving investors hope the economy will improve and boost corporate top lines down the road.
The Dow 30 rose 0.91%, the S&P 500 index rose 0.78%, while the NASDAQ Composite index rose 1.03%.
The Census Bureau reported earlier that U.S. new home sales rose 18.0% last month to 504,000 units, far surpassing expectations for a 4.4% gain to 430,000 units. New home sales for July were revised to a 1.9% increase from a previously estimated 2.4% drop.