Asia markets traded higher on the final day of a week marked by volatility amid concerns surrounding key central bank decisions and the UK's upcoming June 23 referendum vote on its future within the European Union.

Investor sentiment in Asia also received a boost after US stocks ended a five-day losing streak to close higher Thursday.

Australia's ASX 200 added 0.2 percent in morning trade, boosted by a 0.62 percent advance in the financials sub-index, which accounts for nearly half of the broader index. In South Korea, the Kospi was up 0.52 percent; Hong Kong's Hang Seng index added 1 percent.

Chinese mainland shares traded higher, with the benchmark Shanghai composite up 0.81 percent and the Shenzhen composite adding 1.39 percent.

Japanese shares received a boost from a relatively weaker yen, as the benchmark Nikkei 225 was up 1.59 percent. The yen had strengthened against the dollar, after the Bank of Japan (BOJ) kept monetary policy steady on Thursday, in line with expectations.

The dollar/yen currency pair traded as low as 103.58 after the BOJ decision. As of 9:24 a.m. HK/SIN on Friday, the pair traded at 104.56. The yen also gained against other major crosses, with the euro/yen at 117.75, up from lows around 115.46 on Thursday.

Japan's Finance minister Taro Aso told reporters on Friday he was deeply concerned about the "one-sided, rapid and speculative moves" seen in the currency market and that he would respond if necessary to ensure stability in currencies, according to Reuters.

Some analysts said Thursday's moves in dollar/yen and euro/yen were largely due to non-Japanese factors.

"We see expectations of Fed rate hikes as the main driver of the dollar/yen," said Michael Sneyd, a foreign exchange strategist at BNP Paribas. He added the fall in the euro/yen pair "in part reflects increased uncertainty related to the UK's upcoming referendum on EU membership."

Major Japanese exporters rallied on Friday, with shares of Toyota up 2.03 percent, Nissan adding 0.22 percent and Sony up by 0.61 percent. A relatively weaker yen is a positive for exporters as it increases their overseas profits when converted to local currency.

Much of the global economic uncertainties seen in markets this week surrounded the crucial June 23 referendum in the UK, where Britons will vote to decide to either leave or remain within the European Union. Several surveys released recently have shown public opinion was divided, with the Brexit campaign gaining momentum.

Campaigning for the referendum, however, was halted Thursday, after a British lawmaker, Jo Cox, was shot to death while meeting with constituents. Police said they arrested a 52-year-old man in the attack on Cox, but did not know of a motive for the killing.

"It is a tragic event. I have to say it may change the psychology of the campaign. And those who are pro-EU might benefit from this tragic event," Fariborz Moshiran, director of the Institute of Global Finance at the UNSW Business School, told CNBC's "Rundown" on Friday.

"The global economy is highly interdependent and for that reason the world is moving towards more unity and diversity rather than isolation from an integrated bloc such as the European Union," he said. "For that reason I think it is possible to see a very close race and I wouldn't be surprised if the outcome were to be different from what the current opinion polls are showing."

The British pound traded at USD 1.4259 as of 8:20 a.m. HK/SIN on Friday, climbing on the back of the news from levels as low as USD 1.40 on Thursday.

Oil prices advanced during Asian hours, after slumping nearly 4 percent overnight amid lingering uncertainties. The global benchmark Brent was up 0.87 percent at USD 47.60 a barrel, after falling 3.6 percent on Thursday. US crude added 0.61 percent to USD 46.49, after finishing down 3.8 percent during US hours.

Energy plays in Asia traded mixed. Shares of Santos were up 0.94 percent, Oil Search was down 1.12 percent and Inpex gained 1.29 percent. Chinese mainland oil stocks were mostly up, with Sinopec advancing 1.05 percent.

The dollar touched levels near 95.300 overnight against a basket of currencies, but by Friday early morning, the dollar index pared back some of the gains to trade at 94.412.

Daniel Hui from JPMorgan Securities said a temporary dollar discount is likely in the coming months ahead of the US Presidential elections.

"We do not believe FX markets have yet begun to actively and systematically price in political risk surrounding the upcoming U.S. general elections," Hui said in a note, adding it was likely due to "preoccupation with other imminent global political risk factor (the U.K. EU referendum next week), and because until at least last week there was still some lingering uncertainty as to who the two candidates competing in November would be."

Hui said in the coming weeks, foreign exchange markets will look to "more actively price in US election risks" and that the dollar discount will likely be seen against reserve assets such as the euro, yen and gold.

Stateside, the Dow Jones industrial average closed up 92.93 points, or 0.53 percent, at 17,733.10; the S&P 500 index was up 6.49 points, or 0.31 percent, at 2,077.99 and the Nasdaq composite added 9.98 points, or 0.21 percent, to 4,844.91.

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First Published:Jun 17, 2016 7:49 AM IST