Asian shares rose on Friday thanks to gains on Wall Street, while the dollar steadied after facing pressure from a rallying yuan and U.S. data that offered no clarity on whether the Federal Reserve might raise interest rates next week.
The weak data raised expectations of more policy easing in the coming months. A Reuters poll at end-August showed a 80 percent of respondents expected a further cut in the reserve requirement ratio and 70 percent saw a chance of interest rate cuts.
The index had already dropped earlier in the session following Friday`s Wall Street slide, triggered after the August U.S. jobs report failed to give a clear view on the Federal Reserve`s interest rate hike.
Gold rallied to its highest since mid-July last week after Beijing`s mini-devaluation of the yuan, as analysts speculated that a weakening Chinese currency could prompt the Federal Reserve to postpone an expected rise in US interest rates.
Spot gold was up 0.1 percent at $1,088.86 an ounce by 0037 GMT, but not far above last week`s trough of $1,077, its lowest since February 2010. It was down nearly 1 percent for the week and 7 percent for the month.