After market hours on Thursday, the Bangko Sentral ng Pilipinas raised the rate on its overnight reverse repurchase facility by 25 basis points to 4.75 percent, lifting borrowing costs by 175 bps this year, in a bid to tackle elevated inflation and bring it back to within its 2-4 percent target range next year.

"Central bank raising rates by 25 basis points, coupled with falling crude oil prices, is a positive indicator that inflation will slow in the coming months, helping stocks rise," said Fio Dejesus, an equity research analyst with RCBC Securities.

Industrials and financials helped the key stock index <.PSI> close higher for a third straight session. Top conglomerate SM Investments Corp climbed 1.1 percent, while BDO Unibank Inc rose 5.1 percent.

For the week, Philippine shares closed 1.6 percent higher after a 2.4 percent drop last week.

Indonesian shares <.JKSE> rose about 1 percent, extending gains into a fourth session, boosted by financial and telecom stocks. For the week, they gained 2.4 percent.

Bank Central Asia Tbk PT and Telekomunikasi Indonesia (Persero) Tbk climbed 2.7 percent and 3.6 percent, respectively.

Singapore shares <.STI> gained nearly 1 percent, with conglomerates Sembcorp Industries Ltd and Jardine Matheson Holdings Ltd rising 2.3 percent and 4.3 percent, respectively.

Malaysian shares <.KLSE> extended their gains into a third session, but closed the week 0.1 percent lower.

Sime Darby Bhd, the world's largest palm oil planter by land size, climbed 1.7 percent, while mobile phone operator Axiata Group Bhd rose 1.2 percent.

Malaysia's economy grew at its slowest pace in two years in the July-September quarter as the country grappled with weak external demand and what the central bank called "supply shocks" for liquefied natural gas and palm oil.

Meanwhile, Thai shares <.SETI> closed marginally lower, extending their declines into a third session.

Utility and real estate stocks were the top losers with Central Pattana PCL shedding 3.2 percent and Gulf Energy Development PCL declining 1.6 percent.

For the week, Thai shares fell 2 percent, in their second straight weekly drop.

(Reporting by Aman Swami; Editing by Subhranshu Sahu)

By Aman Swami