Asian stocks posted strong gains on Friday, as investors cheered dovish comments by a top Fed official as well as better than expected fourth-quarter earnings results from Microsoft.
China's Shanghai Composite Index climbed 23.02 points or 0.8 percent to 2,924.20, while Hong Kong's Hang Seng Index jumped 303.74 points or 1.1 percent to 28,765.40.
Chinese households' rising debt servicing costs could weigh on medium-term economic growth, Fitch Ratings said in a report released today.
Although debt servicing costs do not pose near-term risks to financial stability, it will weigh on growth prospects in the medium-term, the rating agency noted.
Japanese shares led regional gains after steep losses in the previous session as the appreciation of the yen took a breather. The Nikkei 225 Index soared 420.75 points or 2 percent to 21,466.99, while the broader Topix closed 1.9 percent higher at 1,563.96.
Exporters Canon, Honda Motor, Toyota Motor and Sony all rose around 2 percent. Panasonic climbed 2.8 percent as the yen held steady after the release of inflation data showing consumer prices rose at the slowest pace in nearly two years in June.
Australian markets rose notably after a top Fed official emphasized the importance of acting quickly to arrest any weakness in the U.S. economy.
The benchmark S&P/ASX 200 Index advanced 51.20 points or 0.8 percent to 6,700.30, while the broader All Ordinaries index ended up 50.80 points or 0.8 percent at 6,786.20.
National Australia Bank rallied 2.2 percent after appointing veteran banking executive Ross McEwan as its new chief executive. The other three big banks rose around 1 percent.
Gold miners surged as the precious metal surpassed the key $1,450 an ounce level for the first time since May 2013. Evolution Mining, Newcrest, Northern Star and Resolute Mining climbed 3-7 percent. Mining heavyweights BHP and Rio Tinto ended marginally lower.
In the oil sector, Woodside Petroleum and Santos fell over 1 percent, while Origin Energy and Beach Energy rose over 2 percent.
Oil prices rose over 1 percent in Asian trading after the U.S. Navy shot down an Iranian drone in the Strait of Hormuz. WTI futures ended down about 2.6 percent overnight as the resumption of service in the Gulf of Mexico region raised concerns about excess supply in the market.
Seoul stocks rallied to snap a two-day losing streak on hopes for a Fed rate cut during a policy meeting slated for later this month. The benchmark Kospi ended up 27.81 points or 1.4 percent at 2,094.36.
Market heavyweight Samsung Electronics advanced 1.5 percent to extend gains from the previous session, while SK Hynix, the world's No. 2 memory chipmaker, added 2.8 percent.
New Zealand shares rose slightly, with the benchmark S&P/NZX 50 Index edging up 12.06 points or 0.1 percent to 10,753.15.
Indonesia's Jakarta Composite Index climbed 0.8 percent after the country's central bank cut its key interest rate for the first time in nearly two years and signaled more easing in future.
Overnight, U.S. stocks fluctuated before closing higher as New York Federal Reserve President John Williams endorsed a near-term interest rate cut by the Fed at the first sign of economic distress.
A mixed batch of corporate earnings results kept gains in check. The Dow Jones Industrial Average inched up marginally, while the tech-heavy Nasdaq Composite rose 0.3 percent and the S&P 500 added 0.4 percent.
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