China's foreign ministry said it hoped for more progress in trade consultations, while U.S. President Donald Trump on Thursday said negotiations were going "very, very good".
Trump said he planned to host China's top negotiator and vice premier, Liu He, at the White House later on Friday.
A U.S. Chamber of Commerce official said chances of a partial deal, with agreements on issues such as currencies and copyright protections, were higher.
"The suspense of whether diplomatic furore, including the 'blacklist', would prematurely blow an interim deal out of the water appears to be assuaged, if not lifted," Mizuho bank said in a note to clients.
"Key to this turn in sentiments was the revival of discussions on a currency deal; forming the basis for a quid pro quo suspension of tariff escalation."
Indonesian stocks <.JKSE> closed at their highest in more than a week, helped by heavyweights like Hanjaya Mandala Sampoerna rise 3.7%.
An index of Indonesia's 45 most liquid stocks <.JKLQ45> rose 1.5%.
Indonesia is expected to post a trade surplus for a second straight month in September amid a slower pace of decline in exports and imports, a Reuters poll predicted ahead of official data out Tuesday.
Real estate and consumer sectors lifted the Philippine index <.PSI> as it gained 1.9% for the week, after three weeks of declines.
Property developer Ayala Land advanced 2.5%, while conglomerate SM Investments gained 1%.
Thai stocks ended higher to close the week 1.3% firmer, helped by gains in the energy and utility sectors.
(Reporting by Soumyajit Saha in Bengaluru; Editing by Robert Birsel)
By Soumyajit Saha
