Japanese stocks closed above the 19,000 mark for the first time in a week, bolstered by a spate of deal-making.  Japan Display jumped 7 percent on reports it is buying Sharp's distressed liquid crystal display (LCD) business; the latter's share price shot up 9 percent. Meanwhile, engineering firm Chiyoda surged 6 percent after agreeing to buy a 50 percent stake in the subsea services business of oilfield services firm Ezra Holdings.  Investors also digested mixed July data released before the market open. Household spending fell 0.2 percent on year, missing expectations for a 1.3 percent climb. But on the bright side, consumer prices were unchanged from a year earlier, defying expectations for a fall, and retail sales also came in stronger than expected.  Australia's benchmark S&P ASX 200 index closed at an eight-day high, extending gains into a fourth straight session.  But banks capped larger gains on the index, with near 1 percent losses for Australia New Zealand Banking and Westpac.  Atlas Iron added 19 percent after announcing progress in its plans to cut costs and increase production.  Supermarket chain Woolworths rose 1.5 percent despite reporting its first drop in full-year profit in nearly two decades.  South Korean stocks also gained for a fourth consecutive session, hitting a nine-day high and ending the week 3.3 percent higher.  Read MoreCan Korean stocks sustain their gains?  Among large-cap stocks, steelmaker Posco increased 3.6 percent while heavyweight Samsung Electronics rose 1.3 percent.  Indonesia's Jakarta composite rose as much as 2 percent, its biggest daily jump in two years, on news of a policy package aimed at shoring up the battered rupiah.  Elsewhere, Philippine stocks jumped 1 percent, tracking the Asia-wide rally.
China's benchmark Shanghai composite ended nearly 5 percent higher with gains accelerating in the final half-hour of trade.