Japan`s Nikkei surged 5.9pc at the close, the most in more than four months, moving away from a 15-month low struck Thursday. It was boosted by speculation that the Bank of Japan would opt for additional stimulus later this month. The rally shrank losses for the week to 1.1pc, hauling the index out of `bear market` territory.
MSCI`s broadest index of Asia-Pacific shares outside Japan rose 2.6pc, the most since September 9, after probing a four-year low on Thursday.
European markets could follow, with financial spreadbetters expecting the FTSE 100 to open up about 0.4pc, Germany`s DAX to start the day as much as 0.9pc higher, and France`s CAC 40 to be up by 0.8pc.
Meanwhile US crude oil extended an overnight rally made after data showed stockpiles at some US sites did not grow as much as forecast.
WTI was up 1.2pc at $30.71 a barrel. US crude fell to its lowest levels since 2003 earlier this week as the prospect of Iranian oil - following the lifting of international sanctions on Tehran - flooding a heavily saturated market dragged down prices.
Brent crude, the European benchmark, also recovered to $30.70.
The rally on the markets capped a tumultous week of sell-offs.
"We`re seeing a really nice bounce today as lots of people close their short positions but that doesn`t necessarily mean we`ve seen the bottom," said Nicholas Smith, a strategist at CLSA.
"It`s tough to know when a panic is going to subside but it does look like we`re starting to get there."
Volatile Shanghai shares closed up 1.3pc, while in Shenzhen the market ended 1.5pc up.
Australian share were up 1.1pc, gaining 0.5pc for the week. South Korea`s KOSPI climbed 2.1pc, ending the week little changed.
The ECB managed to contain some of the pessimism for the time being after ECB President Mario Draghi hinted strongly on Thursday that more easing could be coming within months. Fading growth and inflation prospects will force the central bank to review its policy stance in March, Mr Draghi said.
"With little new information on China, the rebound in sentiment looks to be more closely tied to actions among major central banks," wrote Todd Elmer, Citi`s Asian head of G10 FX strategy.
"However, the apparent improvement in sentiment poses risks. If central banks fail to deliver it could drive a negative turn in market thinking," he added.
The euro slipped 0.4pc to $1.0832. The common currency fell to an eight-month low of $1.0523 in December but has appreciated significantly because the ECB`s easing decision that month fell far short of expectations.
The dollar was up 0.3pc at 118.03 yen, pulling away from a one-year trough of 115.97 struck earlier this week against the safe-haven Japanese currency.
The Chinese yuan remained relatively steady against the dollar as efforts by local authorities to quell speculation of a sharp depreciation appeared to work for now.
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