Asian stocks rose on Thursday after the Bloomberg reported that U.S. and Chinese negotiators are moving closer to agreeing on the amount of tariffs that would be rolled back in a phase one trade deal.
Chinese shares ended higher after U.S. President Donald Trump said talks with China were going "very well".
The benchmark Shanghai Composite index gained 21.35 points, or 0.74 percent, to finish at 2,899.47 while Hong Kong's Hang Seng index rose 0.59 percent to 26,217.04.
Japanese shares rose notably after Prime Minister Shinzo Abe announced a $120 billion fiscal package to support stalling growth in the world's third-largest economy. The Nikkei average rose 164.86 points, or 0.71 percent, to 23,300.09 while the broader Topix index closed 0.48 percent higher at 1,711.41.
Electronic manufacturers and oil-linked shares led the gainers. Panasonic gained 1 percent, Inpex added 1.5 percent and Japan Petroleum jumped 4.3 percent. Steelmaker Nippon Steel soared 6.7 percent and JFE Holdings advanced 5.2 percent.
Australian markets rallied amid growing optimism for a U.S.-China trade deal. The benchmark S&P/ASX 200 index climbed 76.50 points, or 1.16 percent, to 6,683 while the broader All Ordinaries index ended up 76.70 points, or 1.14 percent, at 6,791.10.
The big four banks rose 1-2 percent. Mining heavyweights BHP and Rio Tinto rose 1.6 percent and 0.8 percent, respectively after iron ore futures in China rose on data showing that shipments from Brazil dropped last week.
Woodside Petroleum jumped 1.9 percent, Santos soared 4.2 percent and Oil Search added 1.4 percent after oil prices jumped more than 4 percent on Wednesday on data showing a larger-than-expected drop in U.S. inventories and hopes of deeper production cuts from OPEC. Whitehaven Coal slumped 10.3 percent after cutting its FY20 production outlook and flagging higher costs. In the tech space, Afterpay Touch Group and Appen rose 1-2 percent.
Australia's trade surplus declined on falling exports while retail sales remained flat in October, official data showed today.
Seoul stocks gave up early gains to finish lower as investors remained wary over a potential U.S.-China trade deal. The benchmark Kospi dropped 8.15 points, or 0.39 percent, to 2,060.74.
Market heavyweight Samsung Electronics ended on a flat note while chipmaker SK Hynix advanced 1.4 percent and steelmaker Posco gained 0.9 percent.
New Zealand shares eked out modest gains after Reserve Bank of New Zealand decided to increase the capital requirements of banks to make the banking system safer.
The change in the capital framework will be implemented over seven years, which will give plenty of time for banks to manage a smooth transition and minimize adjustment costs, Governor Adrian Orr said.
The benchmark S&P/NZX-50 index rose by 47.92 points, or 0.43 percent, to 11,257.79. Infratil rallied 2.2 percent on news that its unit Tilt Renewables would sell its Snowtown 2 Wind Farm for A$472 million (S$440 million). Tilt shares jumped 7 percent.