The S&P 500 – the US’s leading index – climbed 0.7 per cent to close at a record high of 1,885 points, after a report showed a tenth straight month of manufacturing expansion.

The Dow Jones Industrial Average also finished higher, up 0.5 per cent.

Gains in the US helped offset weak Japanese data, after a survey revealed many companies do not believe Prime Minister Abe’s economic reforms will push inflation to its 2 per cent target.

Investors shrugged off this fear, with the Nikkei closing up 1 per cent overnight.

Other Asian markets were also firmer, with the Hong Kong Hang Seng closing up around 0.2 per cent.