Asian Markets Rally as U.S. Economic Data Eases Recession Fears

Asian shares ended the week on a high note, with Japanese stocks nearly recouping Monday's losses and other Asian markets rebounding. U.S. jobless claims data reduced fears of a labor market collapse and potential recession. Chinese data also buoyed sentiment, while crude oil prices saw weekly gains on Middle Eastern tensions.

Asian shares ended a tumultuous week on a positive note. Japanese stocks nearly recovered from significant losses earlier, buoyed by Wall Street's strong rebound and better-than-expected U.S. jobless claims data.

Japan's Nikkei rose 1.7% on Friday, nearly erasing a 13% drop from Monday. Meanwhile, MSCI's index of Asia-Pacific shares outside Japan climbed 1.4%, reversing Thursday's decline. U.S. jobless claims fell more than anticipated, alleviating fears of an impending recession and leading to a reduction in the likelihood of a steep rate cut from the Federal Reserve.

Sentiment was also uplifted by Chinese data indicating a rise in consumer inflation, reducing fears of economic deflation. In commodities, crude oil prices slipped but remained up for the week due to Middle Eastern conflict concerns, while gold prices saw a slight dip.

(With inputs from agencies.)