South Korean stocks firmed the most in Asia on Friday, as the technology sector tracked gains in US semiconductor stocks and investors nurtured hopes that China was scaling back regulatory clampdowns.

Seoul equities climbed 1.4% and were set for their best day in over a week, while neighbouring Taiwan's tech-heavy stock bourse also advanced as much as 0.9%.

"Asian benchmark stock indices that have a higher weightage in tech-related stocks are outperforming today... likely due to the outperformance in the US semiconductor stocks," said Kelvin Wong, an analyst at CMC markets.

The Philadelphia SE Semiconductor index added 1.9% overnight to drive most of the gains on Wall Street after a heavy selloff in the previous session.

"Also, stringent regulatory clampdowns on China Big Tech have started to tone down," Wong added, referring to reports that Didi Global will relaunch its ride-hailing and other apps in China by the end of 2021 in anticipation that Beijing's probe into the firm will be wrapped up by then.

Investors were also relieved after cash-strapped developer China Evergrande Group again avoided a default with a last minute payment, alleviating fears of an accelerated collapse of China's property sector that would have widespread ramifications in emerging Asia.

In Malaysia, the stock benchmark gained 0.6%, even as data showed the country's economy shrunk more than expected in the third quarter.

"With international and interstate travel allowed to resume in October, along with dine-in and other domestic services, the economy is set for a smart, redeeming rebound in fourth-quarter," Mizuho Bank analysts said in a note.

Singapore shares edged lower, with transport firm Comfortdelgro the top loser for a second day in a row after it halted plans for an initial public offering of its Australian unit.

Singapore Airlines, down 1.7%, also weighed on the benchmark after it posted a loss in the second quarter.

Currency markets in the region were mixed, with the Singapore dollar and the Japanese yen weakening over 0.1% as the dollar hit a 16-month high on inflation fears.

Highlights:

** Indonesian 10-year benchmark yields are up 3 basis points at 6.201%

** Malaysia's 10-year benchmark yield is up 0.6 basis points at 3.569%

** Chipmakers Silergy Corp & Alchip Technologies lift Taiwan benchmark with around 5% jump, each