The benchmark Nikkei 225 index was up 0.86 percent or 176.74 points at 20,637.67 in early trade, while the broader Topix index was up 0.79 percent or 11.83 points at 1,502.00.

China's Commerce Ministry hinted Beijing could break the cycle of tit-for-tat retaliation in the trade war with the United States, while in Washington US President Donald Trump said the two sides continued to talk.

Hope that the countries could avoid catastrophe sent Wall Street higher for a second day while European stocks rebounded and London consolidated gains.

"Following gains on Wall Street and a cheaper yen, Japanese shares are seen gaining in early trade," Toshiyuki Kanayama, senior market analyst at Monex, said in a note.

The dollar fetched 106.48 yen in early Asian trade, almost unchanged from 106.51 yen in New York but up from 105.91 yen in Tokyo late Thursday.

In Tokyo, China-linked shares were higher, with industrial robot maker Fanuc trading up 2.47 percent at 18,410 yen and Rohm up 3.15 percent at 7,530 yen.

Sony was up 0.57 percent at 5,942 after it announced plans to sell Olympus shares it holds.

Investors shrugged off a slew of economic indicators released minutes before the opening bell.

Japan's jobless rate in July improved to 2.2 percent from 2.3 percent the previous month, the internal affairs ministry said, confirming the country's job market remains tight.

Factory output in July rose 1.3 percent month-on-month, the first rise in the past two months, the trade and industry ministry said, but its view on the economy remained unchanged because of fluctuating industrial production.

On Wall Street, the Dow ended up 1.3 percent at 26,362.25.