Asian Stocks Rise on Friday Speculating Economic Recovery in China

Asian stocks rose on Friday after Wall Street reversed losses on signs of a measured policy tightening approach from the United States Federal Reserve, as well as expectations of a solid economic recovery in China.

Over the last few weeks, global markets have been buffeted by a slew of strong U.S. data, including overnight jobless claims, implying that the Fed will need to raise rates further and for a longer period of time.

However, investors breathed a sigh of relief after Atlanta Federal Reserve President Raphael Bostic stated his preference for "slow and steady" quarter-point U.S. rate increases to limit economic risk.

Markets are also keeping an eye on China's annual parliament meeting, which begins on Sunday and will set economic targets and elect new top economic officials. Emerging signs of a steady recovery in China's economy, following the relaxation of stringent curbs in December, have also helped to rekindle investor interest in riskier assets.

"We expect the government to provide a progrowth policy agenda, with support for both the infrastructure and property sectors," Commonwealth Bank of Australia analysts wrote in a note.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.5% in early trade, putting it on track for its first weekly gain in five weeks. So far this month, the index is up 1.6%. The S&P 500 e-mini futures were down 0.07 percent at 3,982, but the major indexes ended up in regular trading overnight.

Australian shares gained 0.36 percent, boosted by gains in miners and financials, while Japan's Nikkei stock index gained 1.42 percent.

In early trade, China's blue-chip CSI300 index remained stable. The Hang Seng index in Hong Kong rose 0.45%.

Following Atlanta Fed President Richard Clarida's rate comments, U.S. stocks rose on Thursday, reversing earlier losses, as Treasury yields fell from earlier highs.

The Dow Jones Industrial Average increased by about 1%, while the S&P 500 and Nasdaq Composite both increased by about 0.5%, despite Tesla Inc falling nearly 6% after the company failed to impress investors with few details on its plan to unveil an affordable electric vehicle.

The yield on benchmark 10-year Treasury notes reached 4.0556 percent, up from 4.073 percent on Thursday. The two-year yield, which rises as traders expect higher Fed fund rates, rose to 4.8913 percent from 4.904 percent at the close in the United States.

In terms of currencies, the dollar index, which tracks the greenback against a basket of other major trading partners' currencies, was down at 104.86. The index is now up more than 1% for the year, but it is still down from a high of around $114 in September.

The dollar fell 0.15 percent to 136.55 yen after rising to 137.10 overnight, its highest level since December 20.

The euro gained 0.8% to $1.0602 after recovering from a nearly two-month low of $1.0533 at the start of the week.

Oil prices remained firm in the energy market, boosted by signs of a strong economic rebound in top crude importer China and easing concerns about aggressive US rate hikes.

US crude fell 0.36 percent to $77.88 per barrel. Brent crude was trading at $84.45 per barrel.

Gold was marginally higher. The spot price of gold was $1839.95 per ounce.