Asian stocks advanced on Friday, the dollar stuck to near two-month highs and Treasury yields fell as traders awaited a key U.S. inflation reading later in the day that could influence the Federal Reserve's decision on when to begin cutting interest rates.
Gold was marginally lower in Asian trading, while oil extended gains for a third day and was poised for a third straight weekly jump as rising Middle East tensions stoked worries about global supply disruptions.
China's Shanghai Composite index jumped 0.73 percent to 2,967.40 ahead of key purchasing managers index data due over the weekend.

Hong Kong's Hang Seng index finished marginally higher at 17,718.61.

Japanese markets rose notably to reverse some of the previous session's losses.

The Nikkei average climbed 0.61 percent to 39,583.08 as a slew of data showed inflation in Tokyo picked up in June, industrial output rose more than expected in May and the May jobless rate was unchanged at 2.6 percent.

The broader Topix index closed up 0.57 percent at 2,809.63, reaching a 34-year high amid gains in the technology sector.

The yen hit 161.27 per dollar, its weakest since 1986 ahead of the latest U.S. personal consumption expenditures price index.

Seoul stocks ended higher despite industrial output falling in May due to continued declines in consumption and investment. The Kospi average rose 0.49 percent to 2,797.82.

Australian markets eked out modest gains as higher bullion prices boosted gold mining stocks. The benchmark S&P/ASX 200 inched up 0.10 percent to 7,767.50 while the broader All Ordinaries index rose 0.14 percent to 8,013.80.

Suncorp 3.6 percent after Federal Treasurer Jim Chalmers gave the go-ahead to ANZ to acquire its banking arm. Nine Entertainment rose 1.1 percent after an announcement that the trouble-plagued media firm will cut up to 200 jobs.