Asian markets surged and the euro broke the 100 yen barrier Friday after the European Central Bank unveiled a plan to buy troubled eurozone nations' bonds in a bid to tackle the region's debt crisis.
The bullish sentiment fuelled by ECB chief Mario Draghi's announcement was increased by US data showing many more jobs than expected were created in the private sector last month, lifting hopes for the world's number one economy.
Tokyo surged 2.20 percent, or 191.08 points, to 8,871.65, Seoul climbed 2.57 percent, or 48.34 points, to 1,929.58 and Sydney rose 0.30 percent, or 12.9 points, to 4,325.8.
Hong Kong jumped 3.09 percent, or 592.86 points, to 19,802.16 and Shanghai soared 3.70 percent, or 75.84 points, to 2,127.76.
Draghi said Thursday the ECB would buy unlimited amounts of debt from troubled nations such as Spain and Italy in order to lower their cost of borrowing and help them get back on their feet -- a scheme named "Outright Monetary Transactions".
The OMTs "will enable us to address severe distortions in government bond markets which originate from, in particular, unfounded fears on the part of investors of the reversibility of the euro", Draghi said.
"We will do whatever it takes" to keep the eurozone together, he added.
However, he said the purchases would depend on those countries asking for bailout cash and agreeing to undertake economic reforms.
"(The announcement) exceeded market expectations, which hasn't happened for a long time," Dariusz Kowalczyk, senior economist and strategist at Credit Agricole in Hong Kong, told Dow Jones Newswires.
"It draws a line, for a while at least, under the issue of peripheral European debt."
The yield on benchmark 10-year Spanish bonds fell late Thursday to 6.0 percent, compared with close to 7.0 percent at the start of the week, while Italy's borrowing costs were at 5.2 percent, from 5.7 percent days ago.
On forex markets the euro rallied to two-month highs against the yen and dollar.
It jumped above the 100 yen level for the first time since July 5, hitting 100.15 in Tokyo, up from 99.60 yen late Thursday in New York.
The common currency also rose to a two-month high of $1.2680, from $1.2629 Thursday, and the dollar rose to 78.94 yen from 78.85 yen.
In the United States figures from payrolls company ADP Thursday showed private-sector employment rising by 201,000 in August, after an upwardly revised July gain of 173,000.
The jobs number was well above the average forecast of 143,000, and showed a strong increase of 29,000 in the key service sector from July, to 185,000.
Also lifting sentiment were figures from the Institute for Supply Management Thursday showing its monthly purchasing managers index for the services sector rose to 53.7 from 52.6 in July, scotching worries of a downturn. A reading above 50 indicates growth.
On Wall Street the Dow climbed 1.87 percent and the S&P 500 advanced 2.04 percent -- both to their highest levels since December 2007. The Nasdaq surged 2.17 percent.
Eyes are now on non-farm payrolls data to be released later Friday, which traders said were also "pointing to quite a strong read as well".
On oil markets New York's main contract, light sweet crude for delivery in October slipped three cents to $95.51 a barrel and Brent North Sea crude for October rose 18 cents to $113.67.
Gold was at $1,694.85 at 1035 GMT compared with $1,708.24 on Thursday.
In other markets:
-- Singapore closed up 0.75 percent, or 22.44 points, at 3,011.70.
Fraser and Neave gained 1.58 percent to Sg$8.38 and Oversea-Chinese Banking Corp advanced 1.96 percent to Sg$9.35.
-- Taipei rose 1.34 percent, or 98.19 points, to 7,424.91.
TSMC gained 3.33 percent to Tw$83.8 while Hon Hai Precision was 0.68 percent higher at Tw$89.0.
-- Manila closed 0.99 percent higher, adding 51.21 points to 5,201.32.
Alliance Global Group gained 2.29 percent to 12.50 pesos while Universal Robina rose 3.54 percent to 64.30 pesos.
-- Wellington closed 0.78 percent, or 28.64 points, higher at 3,722.18.
Fletcher Building was up 0.3 percent at NZ$6.50 and Air New Zealand gained 1.4 percent to NZ$1.13 but Telecom fell 0.6 percent to NZ$2.48.
-- Jakarta closed 0.99 percent higher, adding 40.82 points to 4,143.68.
Astra International rose 1.43 percent to 7,100 rupiah, Telekomunikasi Indonesia gained 1.05 percent to 9,650 rupiah, and Gudang Garam climbed 0.71 percent to 49,750 rupiah.
-- Bangkok added 0.18 percent, or 2.18 points, to 1,246.10.
Medical services company BGH dropped 2.25 percent to 108.50 baht, while supermarket firm BIGC edged up 1.67 percent to 183.00 baht.
-- Kuala Lumpur rose 0.41 percent, or 6.56 points, to 1,624.55.
-- Mumbai rose 1.95 percent, or 337.46 points, to 17,683.73.
Tata Steel rose 5.72 percent to 370.7 while private ICICI Bank jumped 4.68 percent to 937.85 rupees.