Japan's Nikkei led the rally in Asian stocks on Thursday on the yen's weakness as positive bank lending data out of China added to overall investor optimism.
Tokyo's Nikkei 225 closed 1.96 percent higher, as autos and electronic companies continued to benefit from a weak domestic currency.
Chinese banks extended 1.06 trillion yuan ($171.2 billion) of new local currency loans in March, above market expectations for 850 billion yuan, Reuters reported.
Seoul's Kospi ended a volatile trading day 0.73 percent up amid disappointment over a central bank decision on Thursday. A rate cut had been anticipated, but the Bank of Korea surprised investors by holding rates steady at 2.75 percent.
Bank of Korea Surprises With No Interest Rate Cut
"While we continue to see the need for the BOK to cut rates, today's [Thursday's] decision shows its strong reluctance to accommodate the changing economic environment. We now expect the BOK to continue to hold through the rest of 2013 with an easing bias, while the first rate hike will occur in Q1 2014," said Raymond Yeung, senior economist at ANZ.
Meanwhile Sydney's S&P ASX 200 recouped some of the previous day's losses and finished the day 0.79 percent higher as financial stocks led gains.