Still, the region's stocks have collectively lost about a fifth of their value this year, as natural calamities and financial turmoil took a toll on the risk appetite of investors, driving them to safer assets such as the US dollar and gold.
The MSCI index of stocks outside Japan is down more than 18 per cent this year, on track for its first annual loss since 2008.
Australia's S&P/ASX 200 index, down 14 per cent this year, is poised for its first back-to-back loss in 30 years, while Japan's Nikkei and Topix have lost 18 per cent and 19 per cent respectively.
"If you look around at all the asset classes, it really has been a year of safe-haven flows, it is about preserving your capital and returning your equity," said Chris Weston, institutional dealer at IG Markets in Melbourne.
Investors were spooked in 2011 by an earthquake and tsunami in Japan, which was followed by debt crises in the United States and Europe and floods in Thailand.
On Friday, the mood was cautiously upbeat after US data on Thursday pointed to positive trends for the world's biggest economy and triggered modest gain in US and European stocks.
The MSCI ex-Japan index was up 0.2 per cent, while the Nikkei was up 0.4 per cent on the day.
Pending sales of existing US homes surged to a 1-1/2-year high in November and factory activity in the US Midwest grew more than expected in December.
The euro also benefited from the data which offset euro zone worries, and offered support to risky assets.
The dollar index retreated from a one-year peak of 80.854 to 80.410 and the euro bounced off a 15-month low of $US1.2856 to $US1.2951.
Crude oil held on to overnight gains as the rise in the stock market and short covering helped shake off early losses caused by a rise in US crude stockpiles. US crude was up 0.5 per cent, while Brent was up 0.1 per cent.
The focus remained on Iran after Tehran again threatened to block traffic through the Strait of Hormuz, a crucial passage for Middle Eastern crude suppliers after the European Union's decision to tighten sanctions on Iran over its nuclear program. The United States said it would preserve oil shipments in the Gulf. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
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