UK Stocks Lead European Rally, US Faces Volatility

Taiwan's key index rose 1.4 percent, while Australia's benchmark inched up 0.2 percent.

Shanghai's index stretched its winning streak with a 0.9 percent gain as the government lifted a nine-month ban on initial public stock offerings.

The moratorium was imposed last year after the country's markets plunged, so Friday's news was seen as vote of confidence in the health of China's markets and economy. Investors also were hopeful the rollout of IPOs would be gradual, the better to avoid a deluge of new offerings that could depress prices in the broader market.

The dollar was down 0.2 percent at 96.49 yen, while the euro rose 0.2 percent to $1.3928.

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AP Business Writers Tim Paradis in New York and Jeremiah Marquez in Hong Kong contributed to this report.