Asian stocks followed Wall Street higher on Friday, with easing concerns about the global banking system as well as strong readings on Chinese manufacturing, services and construction activity helping boost investor sentiment.
The upside, however, was capped by tough talk by Federal Reserve officials on the interest rate outlook. Key U.S. inflation data due later in the day is expected to provide additional clues on the Fed's monetary policy path.
A softer inflation reading may prompt Fed officials to postpone plans for a possible rate hike at the next FOMC meeting in early May.
The dollar headed for a second consecutive quarterly loss, while oil and gold prices were slightly lower in Asian trading.
Chinese and Hong Kong stocks advanced on optimism surrounding China's economic recovery. China's Shanghai Composite Index rose 0.4 percent to 3,272.86, while Hong Kong's Hang Seng Index added 0.5 percent to settle at 20,400.11.
Official data showed Chinese manufacturing activity rose at a slower pace in March but still exceeded expectations. Services activity expanded at the fastest pace in nearly 12 years and construction activity remained strong, boosting the outlook for growth this year.
Japanese shares rose sharply as investors cheered a weaker yen and strong readings on industrial output and retail sales for February.
The Nikkei 225 Index jumped 0.9 percent to 28,041.48 and gained 2.4 percent for the week, marking its best weekly gain in two months. The broader Topix ended 1.0 percent higher at 2,003.50.
Automakers topped the gainers list, while shares of shipping firms extended declines for a second day on going ex-dividend.
Toyota Motor rose over 2 percent after its global sales hit a record for the month of February. Mitsui & Co soared 7.6 percent on a Nikkei report that the trading company is considering raising its total return ratio.
Seoul stocks rallied even as the latest factory output and retail sales figures signaled an uneven economic recovery. The Kospi shot up 1.0 percent to 2,476.86 on hopes for a turnaround in the global semiconductor industry.
Australian markets ended the March quarter on an upbeat note as fears of a global banking crisis receded. The benchmark S&P/ASX 200 Index climbed 0.8 percent to 7,177.80 and ended the week up more than 3 percent.
The broader All Ordinaries Index settled 0.8 percent higher at 7,373.30 after strong gains in U.S. stocks overnight.
Miners led the surge, with Fortescue Metals Group spiking 4.1 percent. EML Payments soared 31 percent despite news that its Irish subsidiary has copped a nil percent growth cap for the next 12 months.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index slipped 0.4 percent to 11,884.50 after a measure of business confidence came in largely unchanged.
U.S. stocks rose for a second straight session overnight as bank worries faded and Fed officials reiterated their resolve to lower inflation.
Jobless claims grew more than expected last week, while the economy grew at a slower pace in the fourth quarter than initially estimated, reflecting downward revisions to exports and consumer spending, separate reports showed.
The tech-heavy Nasdaq Composite rose 0.7 percent and the S&P 500 added 0.6 percent to reach their best closing levels in over a month, while the Dow edged up 0.4 percent.
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