Asian stocks erased early losses to end mostly higher on Friday as the dollar took a breather and investors remained confident that the European Central Bank will expand stimulus as early as December. Sentiment was also underpinned by expectations that the Federal Reserve will take a very gradual approach to rate normalization.
Without explicitly setting a timetable, U.S. Federal Reserve vice chairman Stanley Fischer said on Thursday that the Fed has worked hard to prepare international markets for its first interest rate increase in nearly a decade.
Chinese shares rose modestly on expectations the People's Bank of China will retain a bias to ease its policy further in the coming months as China undergoes a structural transformation. Sentiment was buoyed after China's central bank cut borrowing costs further on loans made under the standard lending facility in its latest effort to underpin the slowing economy.
The benchmark Shanghai Composite index rose 13.44 points or 0.37 percent to 3,630.50 while Hong Kong's Hang Seng index rallied 254.50 points or 1.13 percent to finish at 22,754.72.
Japanese shares edged higher for a fourth day although trading volumes remained thin ahead of Monday's public holiday. The benchmark Nikkei average reversed early losses to close up 20 points or 0.1 percent at 19,879.81, a three-month closing high. The broader Topix index closed 0.17 percent higher at 1,603.18, aided by late buying by institutional investors.
Shares of Renesas Electronics jumped 10.8 percent. The Wall Street Journal reported that German firm Infineon Technologies AG has expressed interest in investing in the semiconductor firm. Sharp Corp soared 4.8 percent on reports it is in talks to sell either or all portion of its display business.
Shipping stocks fell after the Baltic Dry index, a measure of shipping rates for commodities, hit a record low in London overnight. Mitsui O.S.K. Lines dropped 1.8 percent and Nippon Yusen lost 1.2 percent.
Australian shares ended slightly higher to extend gains for the fourth straight session. The benchmark S&P/ASX 200 finished the session up 13.50 points or 0.26 percent at 5,246.1 as gains in banks offset weakness among resource stocks. The broader All Ordinaries index rose 12.20 points or 0.23 percent to 5,305.5.
The big four banks closed up around 1 percent each, while miner Fortescue Metals Group tumbled 3.7 percent and oil & gas producer Santos slumped 4.4 percent. Gold miner Evolution Mining advanced 2.4 percent as spot gold prices held steady on a weaker dollar.
Myer Holdings jumped 4.6 percent after the department store giant reported a lift in same store sales for the first quarter. Medical center and diagnostics group Primary Health Care plunged 7.5 percent after issuing a profit warning. Slater & Gordon plummeted 12 percent after the law firm admitted it had made errors in its annual accounts over two years.
Seoul shares ended on a flat note after a government report showed South Korea's household spending dropped to an all-time low in the third quarter. The benchmark Kospi average inched up 0.95 points or 0.05 percent to 1,989.86. Flat panel maker LG Display rallied 5.6 percent and search engine Naver jumped 3 percent, while automaker Kia Motors lost 1.4 percent.
In a meeting with heads of major economic research institutes in Seoul, the country's finance minister Choi Kyung-hwan said the government will focus on building new growth strategies next year. Separately, Bank of Korea Governor Lee Ju Yeol stressed on the need to prepare for external risk factors in light of last week's terror attacks in Paris.
New Zealand shares rose after Kathmandu Holdings affirmed its 2016 profit guidance and data showed household spending outpaced income in the year ended March. Shares of the outdoor clothing retailer soared 5.7 percent to $1.68, helping the benchmark NZX-50 end up 13.27 points or 0.22 percent at 6,008.52. General insurer Tower slumped 6.4 percent after flagging an annual loss.
Elsewhere, India's Sensex was rising 0.7 percent after the Modi government announced a spate of policy reforms. Malaysian shares were marginally higher and Indonesia's Jakarta Composite index was up 0.7 percent, while Singapore's Straits Times index and the Taiwan Weighted were down about 0.1 percent each.
Malaysia's inflation rate held largely steady at 2.5 percent in October compared to September, official data showed today.
U.S. stocks closed marginally in the red overnight but were still up on the week.
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