Japanese shares outperformed their Asian peers on Friday following easing measures from the Bank of Japan and updates from the world's largest pension fund.
The Japanese central bank unexpectedly increased the pace at which it expands base money to about $726 billion per year, citing concerns that a decline in oil prices would hurt consumer prices. That saw the yen weaken to 111 against the dollar, its lowest level since 2008, and Japan's benchmark Nikkei index spike as much as 5 percent in the final hour of trade.
"We think the key part of this announcement is they are trying to drive all doubts out of the market to achieve the desired goal. This is what ever it takes to achieve success and success is defined by 2 percent inflation.... Even for Japanese who doubt Abenomics, if this doesn't drive the doubt out of your mind, I don't know what will," said Ed Rogers, CEO & CIO at Rogers Investment Advisors.
Separately, Reuters reported that a government panel approved plans for the Government Pension Investment Fund (GPIF), the world's largest, to raise its allocation of domestic stocks to 25 percent of its portfolio from 12 percent currently.
Positive data from the U.S. overnight also lifted the mood in Asia. U.S. third-quarter gross-domestic product (GDP) on Thursday rose 3.5 percent, beating expectations.
For the month of October, Hong Kong and Australia were the region's best performers with gains exceeding 4 percent in each market.