Global shares have risen as signs of progress on trade offset a worsening economic outlook, while the Aussie dollar recouped some losses after China denied it had halted Australian coal imports.
Earnings from companies drove big stock swings on Friday as European markets opened. The pan-European STOXX 600 index was up 0.1 and Germany's DAX 0.2 per cent.
Shares in Asia were buoyed by a late rally in Chinese shares, with the main blue-chip index of Chinese shares rising 2.2 per cent.
Chinese shares had faltered earlier amid concern about slowing domestic growth and indications that China would cut its benchmark interest rate only as a last resort to boost the economy.
Japan's Nikkei ended 0.2 per cent lower after data showed core consumer inflation accelerated in January but remained far from the central bank's 2 per cent target.
Australian shares gained 0.5 per cent and Seoul's Kospi .KS11 ended up 0.1 per cent.
The MSCI All-Country World Index, which tracks shares in 47 countries, was less than 0.1 per cent higher on the day.
Trade talks and a growing number of policy U-turns by global central banks have propped up equities in recent weeks.
Trade talks between US and Chinese negotiators continued in Washington, with little more than a week left before a US-imposed deadline expires, triggering higher tariffs.
Reuters reported on Wednesday the two sides were drafting language for six memoranda of understanding on proposed Chinese reforms, progress that had helped to lift investor sentiment.
Chinese Vice Premier Liu He will meet with US President Donald Trump at the White House on Friday, the White House said.
"Given that enough headway seems to have been made to warrant a meeting between Trump and the Chinese negotiator today, it appears more likely that the US will not raise the levies, which should help high-beta currencies and equities push higher," said Konstantinos Anthis, head of research at ADSS.
However, US data showed its economic outlook was growing cloudy. The. Commerce Department said on Thursday domestic orders for non-defence capital goods excluding aircraft unexpectedly fell 0.7 per cent in December.
AUSSIE REBOUND The Australian dollar recovered after falling more than 1 per cent on Thursday, when Reuters reported the Chinese port of Dalian had banned imports of Australian coal indefinitely.
China's foreign ministry said on Friday coal imports continued but customs had stepped up inspections environment and safety checks on foreign cargoes.
Reserve Bank of Australia Governor Philip Lowe cautioned against seeing restrictions as being directed at Australia, and Prime Minister Scott Morrison said the ban does not indicate a souring relationship between the countries.
Separate comments by Lowe that a rate increase may be appropriate next year also helped to boost the Aussie dollar. It was last up 0.35 per cent at $US0.7112 ($A1.0021)0.
Elsewhere, the euro was 0.1 per cent higher at $US1.1346 ($A1.5987) , nearing a two-week high. German business morale fell for a sixth time in a row, to its lowest in over four years, a survey showed.
European Central Bank policymakers asked for swift preparations to give banks more long-term loans, minutes of its last meeting showed on Thursday.
The dollar index, which tracks the currency against six others, was down 0.1 per cent at 96.549.
Italian government bond yields crept up on Friday, reflecting caution among investors before a Fitch ratings review.
US crude oil rose 0.3 per cent to $US57.14 ($A80.51) a barrel. Brent crude was up nearly 0.2 per cent at $US67.18 ($A94.66).
Spot gold was trading up about 0.2 per cent at $US1325.83 ($A1868.15) per ounce.
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