Nikkei approaches all-time high, HK leads gains in Asia

Hong Kong markets led gains in Asia on Friday, with Japan's Nikkei 225 hitting a fresh 34-year high as it attempted to scale its all-time peak, reports CNBC.

At its intraday high of 38,863.69, Nikkei was less than 100 points from scaling its record high.

The index gave up its earlier gains to end 0.86 per cent higher at 38,487.24, a day after the country lost its spot as the third-largest global economy to Germany and reported a technical recession.

The economic slowdown in Japan has raised hopes it may stick with its ultra-loose monetary policy for longer, even as the country's finance minister has reportedly raised concerns on yen's weakness.

Other Asia-Pacific markets rose Friday, tracking Wall Street gains, with the S&P 500 notching a fresh record high.

Hong Kong's Hang Seng index climbed 2.41 per cent, while mainland Chinese markets remain closed for the Lunar New Year holidays.

In Australia, the S&P/ASX 200 rose 0.69 per cent to close at 7,658.3, while South Korea's Kospi climbed 1.27 per cent to end at 2,624.73.