Japanese stocks rounded out a weekly gain after data showing cooling inflation added to the supportive environment for equities.  

Topix Index rose 0.4% to 2,336.43 as of market close Tokyo time.

Nikkei advanced 0.1% to 33,169.05.

Mitsubishi UFJ Financial Group Inc. contributed the most to the Topix Index gain, increasing 2.9%. Out of 2,154 stocks in the index, 1,550 rose and 521 fell, while 83 were unchanged.

Speculation that the Bank of Japan may still be some way off from unwinding its accommodative policy helped a rebound in stocks, and economic data in the US also propped up the Japanese market on Friday.

Hong Kong shares finished sharply lower Friday as tech firms were hammered after China unveiled plans to restrict the online gaming industry.

The Hang Seng Index tumbled 1.69 percent, or 280.72 points, to 16,340.41.

Tencent dived 12.4 -- having lost more than 15 percent at one point and wiping more than $50 billion off its value, according to Bloomberg -- while Netease shed 24.6 percent.

The Shanghai Composite Index slipped 0.13 percent, or 3.94 points, to 2,914.78, and the Shenzhen Composite Index on China's second exchange lost 0.88 percent, or 15.86 points, to 1,785.64.

Gold prices closed higher for a second-straight day on Friday as a key US inflation measure fell more than expected, pushing down the dollar.

Gold for February delivery closed up US$17.80 to settle at US$2,069.10 per ounce, the highest since the precious metal rose to a record US$2,089.70 on Dec.1

The rise comes as the US Bureau of Economic Analysis reported the November Personal Consumption Index (PCI), the Federal Reserve's preferred inflation measure, rose by 2.6% annualized, under expectations for a 2.8% rise and down from 2.9% in October. Core PCI, excluding food and energy, rose 3.2%, down from 3.4% in October, and under the consensus analyst expectation of a 3.3% rise, according to Marketwatch.

The lower than expected reading is raising hopes the Federal Reserve will quickly move to cut interest rates in 2024, pushing the dollar lower. The ICE dollar index was last seen down 0.13 points to 101.71.

Treasury yields were mixed following the data, with the US two-year note last seen down 0.3 basis points to 4.336%, while the yield on the 10-year note was 1.0 basis points to 3.897%

West Texas Intermediate (WTI) crude oil on Friday on record US oil production and slowing demand even as key US inflation measure fell more than expected last month and attacks on Red Sea shipping continue.

WTI crude oil for February delivery closed down US$0.33 to settle at US$73.56 per barrel, while February Brent crude, the global benchmark, was last seen down US$0.22 to US$79.17.

The US Bureau of Economic Analysis reported the November Personal Consumption Index (PCI), the Federal Reserve's preferred inflation measure, rose by 2.6% annualized, under expectations for a 2.8% rise and down from 2.9% in October. Core PCI, excluding food and energy, rose 3.2%, down from 3.4% in October, and under the consensus analyst expectation of a 3.3% rise, according to Marketwatch.

Oil prices have been supported by ongoing attacks on shipping in the Red Sea by the Houthis, who are supporting Hamas in its war against Israel, disrupting 8% of seaborne crude shipments.

However the risks to Middle East shipping have been offset by record US oil production, rising inventories and Angola's withdrawal from OPEC.