Tokyo stocks jumped to a seven-month high on Friday as Asian shares rose on signs that Greece is a step nearer to securing a bailout fund, and on expectations U.S. nonfarm payrolls data due later in the day will confirm a labour market recovery.
Financial spreadbetters expected major European markets to open mixed, with Britain's FTSE 100 seen opening 0.1% lower but Germany's DAX and France's CAC-40 rising as much as 0.2%.
Results of Greece's bond swap with private creditors showed that 85.8% of private creditors had accepted its bond swap offer. The rate would reach 95.7% with the use of collective action clauses to enforce the deal.
The euro fell to around $1.3230 from around $1.3260 after the announcement.
Earlier, officials said a strong take-up of the offer would open the way for Athens to secure international funding needed to clear a major bond redemption falling due on March 20.
Japan's Nikkei average jumped more than 2% at one point, topping the 10,000 mark for the first time in seven months, before ending up 1.7%.
Tokyo spearheaded a rally in the MSCI Asia Pacific ex-Japan index, which gained as much as 1.3 percent.
The pan-Asian index was set for a weekly loss of about 1.5%, however, as global growth concerns dragged prices lower earlier in the week before optimism over Greece took over. So far this year, it has gained more than 12%.
The dollar hit a 9-1/2-month high against the yen above 81.873 yen. Commodity currencies such as the Australian dollar held steady around $1.0640, after briefly falling on a surprise drop in Australia's trade deficit in January.
China's retail sales and industrial output came in below forecast, reflecting slowing growth momentum in the world's second largest economy, and weighed on Chinese shares.
Earlier data showed China's annual inflation cooled surprisingly sharply to a 20-month low of 3.2% in February, below its 2012 target of 4%, giving Beijing room to ease policy further if needed.
"The latest CPI number is mainly because of the dissipation of the Chinese New Year effect. Prices came down after the holiday, especially food prices," said Kevin Lai, economist at Daiwa in Hong Kong. "We think that inflation is not a risk any more."
Spot gold inched up 0.2% to $1,702 an ounce on hopes for further easing by China.
U.S. JOBS AFTER GREECE
As Greece appeared on track to proceed with the debt swap deal, the focus turns to how Greece treats the minor holders of foreign law-issued debt, where there's a lot more uncertainty, said Adrian Foster, head of financial markets research for Asia-Pacific at Rabobank International in Hong Kong.
Greece will top an acceptance rate of 95% in a bond swap plan only after collective action clauses (CAC) that enforce losses on any holdouts are imposed, a government official said.
That may trigger payouts on the credit default swaps (CDS) that some investors held on the bonds, an event which would have unknown consequences for the market.
"All these prospects are more or less within expectations, and now that the refinancing risk will likely be cleared, the real question is whether Greece can keep paying for its debts in order to sustain the lifeline from global lenders," a Tokyo-based analyst at an European securities firm said.
A disorderly default by Greece would have triggered much more far-reaching financial damage than the losses its bond holders suffer. A messy default would risk reigniting concerns about financing in other similarly debt-burdened euro zone countries and undermine the euro.
Hopes for Greece and expectations for solid U.S. economic data underpinned prices of copper and oil on Friday.
Friday's U.S. data is expected to show a rise of 210,000 in nonfarm payrolls, with a gain in the private sector of 225,000 jobs offsetting a modest decline in government jobs.
Brent crude added 0.1% to $125.62 a barrel, while U.S. crude rose 0.3% to $106.89 a barrel.
Copper rose for a third day, advancing 0.9% to $8,405 a tonne.
Sentiment in Asian credit markets also improved, narrowing the spread on the iTraxx Asia ex-Japan investment-grade index by about 5 basis points.
