The majority of Asian markets rose on Friday, mirroring Wall Street's overnight advance as positive U.S. economic data allayed recessionary worries although expectations on interest rate reduction persisted.

Thursday saw a dramatic increase in Wall Street indices as positive retail sales data increased confidence in the US economy. Also, traders continued to price in a 25 basis point rate decrease in September due to softer inflation data from earlier in the week.

Asia's top performers were Japan's Nikkei 225 and TOPIX indices, which increased by 2.5% and 3.2%, respectively. This week, they were also Asia's top performers.

This week, both indexes were expected to gain a combined 7% to 8.5% as they recovered after four weeks in a row of sharp losses that also saw them enter a bear market.

Stronger-than-expected second-quarter GDP figures this week indicated that the economy was expanding along with rising salaries and consumer spending, which helped to boost sentiment towards Japan.

However, JPMorgan analysts cautioned that recent increases were mostly driven by local buying and that international investors should exercise caution when repurchasing Japanese equities. As a result, Japanese stocks continued to trade in a bear market that was initiated last week.

Due to JD.com's over 8% gain after the online retailer reported considerably better-than-expected June quarter results, Hong Kong's Hang Seng index increased by 1.6%.

Rival Alibaba increased 3.6% despite its June quarter profits falling short of forecasts. The rumour that Alibaba may upgrade its Hong Kong listing later this month to allow mainland Chinese investors to purchase it has helped the price rise. This might bring in a large flood of capital for the company through the Southbound stock link.

However, Chinese markets underperformed as investors remained wary of local companies due to the nation's conflicting economic indicators. Both the Shanghai Composite and the Shanghai Shenzhen CSI 300 indices increased by around 0.1%.

The People's Bank of China's further stimulus plans did not do much to boost Chinese equities. Next week, the central bank will choose its benchmark lending prime rate. In July, the rate was unexpectedly lowered to encourage growth.

Other Asian markets rose as risk-driven assets were underpinned by ongoing betting on U.S. interest rate decreases and the dwindling likelihood of a U.S. recession.

(Sources: investing.com, reuters.com)