Asian stock markets are trading higher on Friday after weak U.S. data reduced the already low chance of an interest rate increase by the Federal Reserve at next week's meeting, sending the Treasury yield curve surging to its steepest level in 2-1/2 months.

Japan's benchmark index, Nikkei 225 gained 74.03 points or 0.45 percent to trade at 16,479.04. Hong Kong's Hang Seng went up 144.95 points or 0.63 percent to trade at 23,335.59.

Singapore's Straits Times gained 22.70 points or 0.81 percent to trade at 2,828.22. South Korea's KOSPI rose 7.88 points or 0.4 percent to trade at 1,999.36.

On the other hand, China's benchmark index, Shanghai Composite fell 20.66 points or 0.68 percent to trade at 3,002.85. Taiwan's TAIEX lost 38.53 points or 0.43 percent to trade at 8,902.30.