Asian stocks gain with Nikkei shut for public holiday in Japan

Asian stocks gained on Friday in thin trade with Tokyo out for a public holiday.

Australia's S&P ASX/200 rose 0.5% to 5319.20 while Korea's Kospi Index gained 0.6% to 1931.82, keeping step with gains on Wall Street.

Hong Kong's Hang Seng Index lagged behind the rest of the region Friday, rising 0.17% despite a sharp selloff in the previous session. The Hang Seng is one of the world's worst performing major stock indexes, down 9% so far in 2014.

On the mainland, the Shanghai Composite traded flat Friday and the CSI 300 index fell 0.3%.

Overnight, the Dow Jones Industrial Average rose 0.67%, the S&P 500 index rose 0.60%, while the Nasdaq Composite index rose 0.27%.

Better-than-expected U.S. economic indicators sent stocks rising on Thursday, as expectations began to build that an improving U.S. economy will bolster corporate revenue even if benchmark borrowing costs rise next year.

The Department of Labor reported earlier that the number of individuals filing for initial jobless benefits in the week ending March 15 rose by 5,000 to 320,000 from the previous week’s total of 315,000. Analysts had expected jobless claims to rise by 10,000 last week.

A separate report showed that manufacturing activity in the Philadelphia region expanded at a faster rate than expected in March,

In a report, the Federal Reserve Bank of Philadelphia said that its manufacturing index improved to a reading of 9.0 this month from February’s -6.3 reading. Analysts had expected the index to rise to 3.8 in March.

On the index, a reading above 0.0 indicates improving conditions, below indicates worsening conditions.

The survey’s broadest indicators for general activity, new orders, and shipments increased and recorded positive readings this month, suggesting a return to growth following weather-related weakness in February.

Company employment levels were near steady, but responses reflected optimism about adding to payrolls over the next six months.

The survey's indicators of future activity reflected optimism about continued growth over the next six months.

Soft housing data failed to seriously dampen spirits on Wall Street, as markets dismissed the disappointing numbers as the product of rough winter weather.

The National Association of Realtors reported earlier that existing home sales fell 0.4% to a seasonally adjusted 4.60 million units in February from 4.62 million in January.

February’s pace of sales was the lowest since July 2012.

European indices, meanwhile, finished largely higher.

After the close of European trade, the EURO STOXX 50 rose 0.38%, France's CAC 40 rose 0.46%, while Germany's DAX 30 rose 0.21%. Meanwhile, in the U.K. the FTSE 100 fell 0.47%.