Japan's Nikkei share average hit a two-month high on Friday, boosted by encouraging results from U.S. banks Morgan Stanley and Bank of America , while near-term concerns over Europe eased after successful Spanish debt auctions.

Nomura Holdings, Japan's top brokerage, advanced 4.1 percent and Mizuho Financial Group rose 2.8 percent.

The Nikkei was up 1.5 percent at 8,768.35, while the broader Topix gained 1.6 percent to 752.50.