Asian stocks moved mostly higher on Friday, as weak U.S. labor market data reinforced expectations of a Federal Reserve rate cut later this month and U.S. President Donald Trump signed an executive order officially putting into action the U.S.-Japan trade agreement.
Regional gains, however, remained capped due to caution ahead of key U.S. jobs data due later in the day and amid concerns over Trump's heavy use of tariffs.
Trump said Thursday the United States would soon put a "fairly substantial tariff" on semiconductors coming into the country after previously threatening a 100-percent levy on the chips.
Chinese shares rebounded after falling by the most in five months on Thursday following reports that the country's financial regulators are considering a number of cooling measures for the stock market.
The benchmark Shanghai Composite Index rallied 1.2 percent to 3,812.51 on hopes that Beijing can keep stock prices rising while avoiding speculative bubbles. Hong Kong's Hang Seng Index surged 1.4 percent to 25,417.98.
Japanese markets rose sharply, with auto and technology stocks leading the surge after Trump signed the executive order cutting the tariff on the country's automotive imports.
Investors also cheered data that showed Japanese household spending rose by an annual 1.4 percent in July, up slightly from the previous month's 1.3 percent increase.
The Nikkei 225 Index jumped 1.0 percent to 43,018.75, while the broader Topix Index settled 0.8 percent higher at 3,105.31.
Seoul stocks ended higher for a fourth consecutive session, with the Kospi inching up 0.1 percent to 3,205.12. SK Hynix climbed 3 percent while Samsung Electronics declined 0.9 percent.
Hyundai Motor shed 0.7 percent after reports that up to 450 workers at a Hyundai Motor facility under construction in Georgia have been detained in a raid by U.S. authorities in a major immigration enforcement operation.
Australian stocks closed higher, led by gains across big four banks, consumer discretionary, real estate and gold stocks.
The benchmark S&P/ASX 200 Index rose 0.5 percent to 8,871.20 but posted its first weekly decline after rising for four consecutive weeks. The broader All Ordinaries Index closed up 0.5 percent at 9,140.50.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index climbed 0.7 percent to 13,223.53, extending gains from the previous session to reach a two-week high.
The dollar weakened and gold held near record levels in Asian trading ahead the pivotal U.S. jobs data later in the day.
Economists expect another tepid report that might show slowing job growth and rising unemployment due to Trump's unpredictable trade policies.
Oil headed for its first weekly loss in three on fears of oversupply and OPEC+ policy uncertainty.
Overnight, U.S. stocks moved notably higher. The tech-heavy Nasdaq Composite rallied 1 percent as softer labor market data fueled fresh hopes for a Federal Reserve rate cut this month. The S&P 500 and the Dow both climbed around 0.8 percent.