Asian stocks rose broadly on Friday after White House economic adviser Larry Kudlow said the U.S. and China are communicating "every single day" and the 'phase one' trade deal was close though "not done yet."
Investors also welcomed a goodwill gesture by China lifting a nearly five-year ban on imports of U.S. poultry meat, a move that could lead to more than $1 billion in annual shipments to China.
Chinese shares closed lower, with the benchmark Shanghai Composite index ending down 0.64 percent at 2,891.34 despite China's central bank unexpectedly adding liquidity to the banking system to help lenders through the tax season.
Investors also ignored data showing that China's house prices logged a moderate growth in October. Hong Kong's Hang Seng index ended little changed with a positive bias.
Japanese shares closed higher as the yen weakened on reports suggesting that the U.S. and China are making progress in trade talks. Investors also welcomed final data showing that Japan's industrial production grew more than initially estimated in September.
Industrial production rose 1.7 percent month-on-month in September. According to the initial estimate, production had increased 1.4 percent.
The Nikkei average gained 161.77 points, or 0.70 percent, to finish at 23,303.32 while the broader Topix index closed 0.73 percent higher at 1,696.67.
FamilyMart UNY Holdings jumped 2.2 percent after the convenience store operator said it would cut about 800 jobs, or about 10 percent of its workforce, as part of its efforts to streamline operations following repeated consolidations.
Australian markets rose sharply, led by material and technology stocks. The benchmark S&P/ASX 200 index climbed 58.60 points, or 0.87 percent, to 6,793.70 while the broader All Ordinaries index ended up 58.10 points, or 0.85 percent, at 6,898.90.
Mining heavyweights BHP and Rio Tinto rose around 1.3 percent, while smaller rival Fortescue Metals Group jumped as much as 3.8 percent.
National Australia Bank shed 0.6 percent after the lender said 1,700 of its staff failed to meet risk expectations during the last financial year.
Graincorp surged 11.5 percent after the competition regulator approved the sale of its bulk liquid terminals business. Bellamy's Australia rallied 1.9 percent after Treasurer Josh Frydenberg approved a $1.5 billion takeover offer of the infant formula maker.
Tech stocks extended recent gains, with Afterpay Touch rising 4.3 percent and Appen adding 1.5 percent. Healthcare stocks also extended gains, with CSL climbing 1.9 percent to a record high.
Seoul stocks rallied to hit a six-month high on revived hopes of a U.S.-China trade deal. The benchmark Kospi recovered from a weak start to end the session up 22.95 points, or 1.07 percent, at 2,162.18. Market heavyweight Samsung Electronics advanced 1.7 percent and chipmaker SK Hynix jumped 2.2 percent.
New Zealand shares gave up early gains to finish marginally lower. Infratil and Ryman Healthcare rose 1-2 percent. New Zealand manufacturing sector returned to positive territory for the first time in four months in October, survey data from the Business NZ showed today, with the corresponding index rising to 52.6 from 48.8 in the previous month.
Separately, Reserve Bank of New Zealand Governor Adrian Orr said the economy is not in a recession but it is expected to recover over 2020. The governor said the bank will continue to communicate and offer forward guidance as to future path of policy.
Malaysia's KLSE Composite was little changed after a government report showed the country's economic growth slowed in the third quarter. GDP climbed 4.4 percent on a yearly basis following second quarter's 4.9 percent expansion.
Indonesia's Jakarta Composite index was up 0.3 percent after data showed the country's exports declined at a slower-than-expected rate in October. Exports fell 6.13 percent year-on-year in October. Economists had expected an 8.15 percent decrease.
U.S. stocks ended mixed overnight as optimism over a 'phase one' U.S.-China trade deal faded and Cisco Systems issued a bleak outlook.
The S&P 500 inched up 0.1 percent to a fresh record closing high, while the Dow Jones Industrial Average and the Nasdaq Composite index edged down marginally.