Dollar rallies on Trump tax pledge

Japan's Nikkei index led the advance, piling on 2.5 per cent as the yen sank, while a forecast-busting trade report from China also lifted spirits in Hong Kong and Shanghai, dealers said.
    European markets were mixed, with London receiving a boost also from far better-than-expected UK industrial production data.
    "Looking ahead to the US open and the Dow Jones is set to build on yesterday's Trump tax promise-inspired all-time highs," said Spreadex analyst Connor Campbell.
    At a meeting Thursday with airline executives, Trump said he would release details of a "phenomenal" tax cut plan in the next two or three weeks.
    The news sent a rocket through Wall Street, where all three main indices ended at record high levels, and the dollar powered higher.
    World stock markets surged in the two months after Trump's November election win, buoyed by his promises to slash taxes, hike infrastructure spending and cut red tape to fan economic growth.
    But in the three weeks since he took office, sentiment has been consumed largely by a series of controversial Trump measures and comments, particularly over trade, that left dealers worried that his domestic agenda had been put on the back burner.
    "Trump has started making the right noises again as far as markets are concerned, with Thursday's promise of a 'phenomenal' tax announcement in the coming weeks certainly hitting all the right notes," said Craig Erlam, senior market analyst at Oanda trading group.
    "Investors have become a little apprehensive in recent weeks due to the unpredictable nature of Trump's policies and the timing of the announcements which has taken the edge of moves we saw heading into year-end."
    Elsewhere Friday, oil prices rose as the International Energy Agency watchdog said Opec countries are largely complying with a landmark deal to reduce the global oil glut.
    In a monthly update, the IEA added that oil demand was likely to be more vigorous than anticipated this year. 
    
    Key figures around 1130 GMT  
    
    London - FTSE 100: UP 0.2 per cent at 7,246.38 points
    Frankfurt - DAX 30: UP 0.1 per cent at 11,654.84
    Paris - CAC 40: DOWN 0.2 per cent at 4,818.01 
    EURO STOXX 50: DOWN 0.4 per cent at 3,266.18 
    Tokyo - Nikkei 225: UP 2.5 per cent at 19,378.93 (close)
    Hong Kong - Hang Seng: UP 0.2 per cent at 23,574.98 (close)
    Shanghai - Composite: UP 0.4 per cent at 3196.70 (close)
    New York - Dow: UP 0.6 per cent at 20,172.40 (close)
    Euro/dollar: DOWN at $1.0644 from $1.0658 
    Pound/dollar: DOWN at $1.2488 from $1.2496
    Dollar/yen: UP at 113.43 yen from 112.67 yen
    Oil - Brent North Sea: UP 55 cents at $56.18 per barrel
    Oil - West Texas Intermediate: UP 43 cents at $53.43