Nikkei Rallies 3.5%
Japan's benchmark stock index crossed the 13,600 mark to hit a three-week high on the back of positive economic reports. May consumer prices stopped falling for the first time in seven months, while industrial output and retail sales came in much stronger than expected.
"We had better job market numbers, better production numbers and even consumer prices are picking up. So data-wise, today [Friday] is a pretty good day for Japan," said Takuji Okubo, principal & chief economist, Japan Macro Advisors.
Meanwhile, a weaker yen also underpinned gains. The yen declined to 98.85 per U.S dollar, boosting exporters across the board. Consumer electronics makers Sharp increased 8 percent while Panasonic jumped nearly 7 percent.
Shanghai Jumps 1.5%
A strong rebound in property and financials led China's benchmark stock index higher while comments from China's central bank allayed fears over a cash squeeze.
Real estate shares led the gains with Vanke up 8 percent and China Merchants Property rising 7 percent as investors went bargain hunting.
(Read More: 'Dirty Underside to Doing Business in China:' Starnes)
On Friday, People's Bank of China (PBOC) Governor Zhou Xiaochan reiterated its message that it would adjust liquidity in the banking system to ensure stability in financial markets. The PBOC allowed short-term borrowing costs to hit record highs last week to crack down on banks racking up excessive credit growth
China Merchants Bank and Pudong Development Bank increased 6 and 5 percent, respectively while China Minsheng Bank added 4 percent.