Asian equity markets traded mostly higher on Friday, cutting the week's losses, as a positive lead from Wall Street overnight offset concerns about a further decline in oil prices. However, gains were trimmed following the release of soft economic data from the mainland.
China's industrial production rose 7.2 percent on year in November , below expectations for a 7.5 percent increase in a Reuters poll and down from October's 7.7 percent rise. Meanwhile, retail sales rose 11.7 percent on year, above expectations for an 11.5 percent rise. Fixed asset investment for the January-November period increased 15.8 percent, in line with expectations.
Read More Winners & losers: Oil's effect around the globe Wall Street overnightU.S. stocks advanced on Thursday, cutting weekly losses, but euphoria over increased retail sales in November faded after crude dropped below $60 a barrel. The pullback escalated amid efforts to block a spending bill in the House, sparking worries of a government shutdown.
Halting a three-session losing streak, the Dow Jones Industrial Average ended up 0.4 percent, while the S&P 500 added 0.5 percent. The tech-heavy Nasdaq Composite gained 0.5 percent.
Oil prices remain in focus after U.S. crude fell below $60 a barrel on Thursday, the first time in five years that it breached the psychologically-important support level, as oil markets extended this week's losses on oversupply concerns.
Mainland shares flat China's benchmark Shanghai Composite index closed up 0.5 percent, rallying in the last hour of trade as a set of below-view data fanned expectations for more stimulus. "Everybody in China now see stimulus coming, monetary easing, more interest rate cuts and more targeted fiscal measures. [Since] it's a policy market and that's what Chinese investors are seeing, it's driving markets up," Donald Straszheim, Senior Managing Director, China Research at ISI Group, told CNBC.
Lenders traded flat-to-lower following a Reuters reports that Beijing urged mainland banks to step up on lending in the final months of 2014 and relaxed enforcement of loan-to-deposit ratios to expand credit. Merchants Bank and Minsheng Bank dropped more than 2 percent each In Hong Kong, the key Hang Seng index traded modestly higher on Friday. Outperforming the bourse was Coach (COH) which rose to its best levels in 4 months on reports that French luxury retailer LVMH may be interested in the handbag maker.
Tokyo rises 0.7% Japanese shares snapped a three-day losing streak on Friday, on the back of a weaker yen and comforting signs of resiliency in the U.S. economy, but gains were trimmed following the release of softer-than-expected economic data from the mainland. The benchmark Nikkei 225 receded 3.1 percent for the week. The market was also supported by expectations that Prime Minister Shinzo Abe is on track for a landslide win on Sunday's parliamentary election. Polls showed the LDP-Komeito coalition would retain a two-third majority in parliament, giving Abe the mandate he needs to continue his policies. Index heavyweights lifted the bourse; Fast Retailing (Tokyo Stock Exchange: 9983.T-JP) and robot maker Fanuc advanced 2.1 and 0.7 percent, respectively.