Regional gains, however, remained capped due to a holiday in the U.S. and amid caution ahead of U.S. President-elect Donald Trump's inauguration later in the day.

Markets are bracing for major policy announcements and sweeping changes in U.S. trade policies that could thrust businesses into considerable uncertainty.

The dollar index retreated in Asian trade while the Japanese yen held near a one-month high amid expectations that the Bank of Japan (BOJ) might raise interest rates at its upcoming policy meeting.

Gold edged up slightly while oil prices dipped after rising more than 1 percent last week, marking their fourth consecutive weekly rise.

China's Shanghai Composite index finished marginally higher at 3,244.38, giving up early gains after an amicable call between Trump and Xi on trade, TikTok and fentanyl.

Earlier in the day, the People's Bank of China maintained its interest rates for the third straight month, keeping the one-year LPR at 3.1 percent and the five-year LPR at 3.6 percent, amid much uncertainty over the stance of new U.S. administration.

Hong Kong's Hang Seng index jumped 1.75 percent to 19,925.81, led by tech stocks fueled by China's subsidy programs. JD.com soared 7.2 percent and Alibaba surged 4.5 percent.

Real estate stocks also rose as a court extended a deadline for troubled property developer Country Garden to reach an agreement with its creditors until next month.

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