German stocks advanced on Friday as White House economic adviser Larry Kudlow's comments on trade helped revive hopes of a U.S.-China deal and China's central bank unexpectedly added liquidity to the banking system to help lenders through the tax season.
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.
The benchmark DAX was up 30 points, or 0.23 percent, at 13,210 after losing 0.4 percent on Thursday.
Tariff-sensitive automakers BMW and Volkswagen were up around half a percent.
Chipmaker Infineon Technologies edged up slightly after Applied Materials beat Wall Street's targets for its fiscal fourth quarter and raised its outlook.