Asia-Pacific markets rose on Friday and are set to round off the week higher, tracking gains on Wall Street overnight after fresh economic data eased recessionary fears in the U.S.

Retail sales increased 1% in July, far surpassing Dow Jones estimate of a 0.3% uptick. Weekly jobless claims also fell for the week.

“Today’s solid retail sales and claims data is a reminder that the sky is not falling on the U.S. economy,” Wolfe Research chief economist Stephanie Roth wrote on Thursday. “Yes, economic momentum has cooled, but we don’t appear to be headed for recession imminently.”

Traders in Asia assessed revised trade data from South Korea and exports data from Singapore. Taiwan and Hong Kong’s second-quarter GDP data will be out after market hours.

Japan’s Nikkei 225 jumped 2.67%, leading gains in Asia, while the broad-based Topix was 2.07% higher.

South Korea’s Kospi returned from a public holiday to trade 1.71% higher, while the small-cap Kosdaq climbed 1.3%.

The country’s revised trade data for July remained unchanged from its preliminary figures, with exports growing 13.9%  to $57.5 billion and imports climbing 10.5% to  $53.9 billion.

Australia’s S&P/ASX 200 saw a smaller gain of 1.3%. On Friday, Reserve Bank of Australia governor Michelle Bullock said while markets had brought forward their expectations of a rate cut following inflation outcomes in the U.S. and Australia, it was still “premature” to think about rate cuts.

She pointed out that inflation is still “too high” and is not expected to be back in the top of the RBA’s target band of 2% to 3% until the end of next year.

“Circumstances may change, of course, and the outlook is uncertain. But based on what the Board knows at present, it does not expect that it will be in a position to cut rates in the near term.”

Separately, Singapore’s non-oil domestic exports in July grew 15.7% year-on-year, having declined 8.8% in June. This was sharply above Reuters poll expectations of 1.2% growth.

Total trade grew by 13.7% in July 2024, building on the 1.2% increase in June, as both exports and imports increased.

Hong Kong’s Hang Seng index futures were at 17,308, higher than the HSI’s last close of 17,109.14.

Overnight in the U.S., the Dow Jones Industrial Average jumped 1.39%, and the S&P 500 closed up 1.61% for its sixth straight gain. The tech heavy Nasdaq Composite jumped 2.34%.

—CNBC’s Brian Evans and Pia Singh contributed to this report.