Asian stocks rose on Friday, following gains in New York and record highs in London and Frankfurt. The positive sentiment was driven by growing hopes that the Federal Reserve and other central banks are nearing interest rate cuts, as fresh US data indicated a softening labor market, potentially giving room for monetary policy easing. US Treasury bond yields also moved lower, soothing concerns about elevated borrowing costs for the year.

In a positive turn of events, Asian stocks surged on Friday, buoyed by hopes of impending interest rate cuts by the Federal Reserve and other central banks. This optimism was fueled by fresh US data indicating a softening labor market, potentially creating room for monetary policy easing.

The positive sentiment was further bolstered by record highs in London and Frankfurt, signaling a broader market upturn. Speculation is rife that the Fed may cut rates in September, with analysts urging caution as decision-makers await evidence of inflation control.

The upbeat market sentiment saw Asian investors entering the day on a high, with Hong Kong's impressive run propelling it into a bull market after climbing more than 20% from its January lows. While most Asian markets experienced gains, Shanghai and Wellington saw marginal declines. Additionally, oil prices extended gains as investors monitored developments in the Middle East, with hopes for a ceasefire deal.