Asian stocks rose on Friday, heading for their fifth straight week of gains, as data showed a resilient US economy, boosting investor sentiment ahead of next week's central bank policy meetings.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.55 percent to 562.10, a nearly nine-month high.
The index, which fell nearly 20% last year, is up about 11% so far this month and on track for its best January performance ever. The Nikkei 225 index in Japan rose 0.07 percent.
Stocks in Europe were expected to rise, with the Eurostoxx 50 futures up 0.31 percent, the German DAX futures up 0.28 percent, and the FTSE futures up 0.17 percent.
The fourth quarter of the United States' economy grew faster than expected as consumers increased their spending on goods, according to data, but it may be the last quarter of solid GDP growth before the lag effects of the Federal Reserve's jumbo interest rate hikes are fully felt.
According to a separate report, the labour market remains tight, which could lead the Fed to keep interest rates higher for longer.
According to Ashwin Alankar, head of Global Asset Allocation at Janus Henderson Investors, the headline GDP indicated robust economic activity, and if a recession did occur, it would be a shallow one.
"Overall GDP data was a 'tale-of-two cities,' with good overall growth despite less-than-ideal drivers and prices mitigating, but at a worrying rate."
Investors are hoping for a soft landing, which would involve inflation easing against a backdrop of slowing but still robust economic growth.
Futures are pricing in a 94.7 percent chance of a 25-basis-point hike next Wednesday and see the Fed's overnight rate at 4.45 percent by December, which is lower than the 5.1 percent rate projected by Fed officials for next year.
Data on personal consumption expenditures (PCE) in the United States, due at 1330 GMT, will provide additional insight into inflation.
"The disinflation impulse is likely to stretch further, as has been evident from CPI (Consumer Price Index) releases lately, likely continuing to build a case for a 25 basis point rate hike by the Fed next week," Saxo strategists said.
Next week's meetings of the Bank of England and the European Central Bank will also reveal the monetary policy path that these central banks are likely to take.
The Hang Seng Index in Hong Kong gained 0.13 percent after rising more than 2% on Thursday. Mainland China's markets are set to reopen on Monday following the Lunar New Year holiday.
Core consumer prices in Tokyo, a leading indicator of national trends, rose 4.3 percent year on year in January, the fastest annual increase in nearly 42 years.
The Japanese yen rose 0.34 percent to 129.78 per dollar as the data confirmed market expectations that rising inflation could push the Bank of Japan to abandon its current policy.
"We still think the policy change is a long way off," ING regional head of research Robert Carnell said. "The spring salary negotiations are key to watch as wage growth is a prerequisite for sustainable inflation."
The dollar index, which compares the US currency to six other currencies, rose 0.12%, while the euro fell 0.11 percent to $1.0877.
The pound last traded at $1.2393, down 0.10 percent on the day.
Oil prices rose on expectations of increased demand from China's reopening, as well as following strong U.S. data. West Texas Intermediate crude in the United States rose 0.33 percent to $81.28 per barrel, while Brent was at $87.75, up 0.32 percent on the day.