The pan-European Stoxx 600 index rose more than 0.4 percent, with trade-sensitive sectors like autos and basic resources being among the top gainers.

A big focus for investors this week has been the unresolved trade battle between Washington and Beijing. The two countries have been trying to find agreement over a 90-day tariffs truce, but talks appeared to hit a roadblock following a report that the Trump administration had cancelled a trade planning meeting with Chinese counterparts due to outstanding disagreements.

·       Asian stocks rallied to a seven-week high on Friday, buoyed by gains in U.S. technology firms as pockets of strength in corporate earnings eased some of the anxiety over a slowing global economy.

MSCI’s broadest index of Asia-Pacific shares outside Japan gained more than 1 percent to scale its highest since Dec. 4.

“Investors who were already excited about the U.S. chip sector’s earnings the day before got even more reassured after they saw how their stocks moved,” said Shogo Maekawa, a global market strategist at JPMorgan Asset Management.

According to the latest Reuters polls of hundreds of economists from around the world, a synchronized global economic slowdown is under way and any escalation in the U.S.-China trade war would trigger a sharper downturn.

·       Japan’s Nikkei reached a five-week high on Friday as chip-related firms tracked sharp rises by U.S. counterparts, while some investors awaited major events next week for direction.

The Nikkei share average rose 1.0 percent to 20,773.56, the highest closing level since Dec. 19. The benchmark index gained 0.5 percent for the week.

Traders said that the gains in the chip sector lifted sentiment in shares of Apple suppliers as well, with Murata Manufacturing surging 6.1 percent and Alps Alpine adding 5.2 percent.

·       China stocks rose on Friday, helped by strength in banking shares, after regulators unveiled measures to help lenders replenish capital, but lingering worries over Sino-U.S. trade talks and economic health capped gains.

The blue-chip CSI300 index rose 0.8 percent to 3,184.47, while the Shanghai Composite Index gained 0.4 percent to 2,601.72.

China will allow insurance firms to invest in tier-2 capital bonds and perpetual bonds issued by banks, and set up a central bank bills swap to improve the liquidity of banks’ perpetual bonds, policymakers said on Thursday. The move will make banking shares more attractive to investors, analysts say