Japanese shares snapped a four-day losing streak on Friday as investors were encouraged by strong machinery orders data and healthy earnings from high-profile companies such as mobile phone carrier NTT DoCoMo.

Gains were limited, however, by a lack of interest by foreigners, the main force behind a 10-week rally that ended a month ago, as the summer holiday season began in earnest.

Domestic players also were preparing for Japan's "Obon" holidays next week when many people traditionally take vacations and return to their hometowns. Financial markets remain open.

Other Asian markets

South Korean shares closed lower as Samsung Electronics Co and other blue chips fell ahead of an options expiry next week and in the absence of clear guidance from Wall Street.

But losses were limited by gains of banks and Hyundai Group units, which had fallen sharply earlier this week after the suicide of a top executive on Monday.

The benchmark Korea Composite Stock Price Index (KOSPI) fell 0.8 percent to 704.14, bringing the market's drop this week to 3.18 percent. Turnover was low at 1.7 trillion won ($1.44 billion) as losers topped gainers 399 to 335.

Australian stocks firmed on Friday after optimism on Wall Street pushed banks higher while

a new oil find buoyed shares in mining giant BHP Billiton.

The benchmark S&P/ASX 200 index added 10.8 points, or 0.34 percent, to 3,149.4, after hitting a 12-month high of 3,157.7, with concerns about Brambles dragging on a buoyant market. Market volume reached A$1.9 billion ($1.2 billion).

Elsewhere, Singapore was steady, while the Thailand and Philippines markets were buoyant, up 1.3 percent and 2.1 percent respectively.