Asian shares advanced on Friday as encouraging data from the United States and China boosted prospects for the global economy, while the yen hit new lows ahead of next week's Bank of Japan meeting. Both Tokyo and Hong Kong stock markets surged to multi-month highs on the upbeat sentiment.

Investors will be watching how much further Japanese equity markets can climb as the Bank of Japan begins it's two-day policy meeting next week. The central bank is currently mulling various options including open-ended asset purchases until 2 percent inflation is in sight or the more conventional approach of topping up asset-buying.