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SYDNEY, Oct 27 (Reuters) - Asian shares tracked Wall Street futures higher on Friday as Amazon provided some welcome earnings relief, while bonds were able to sustain a rally amid signs U.S. inflation was easing.
All eyes were on U.S. data later in the session that may show core inflation growing 0.3% in September on a monthly basis, with the annual rate expected to edge lower to 3.7% from 3.9% a month earlier.
Europe was set for a stronger open, with EUROSTOXX 50 futures rising 0.3% and FTSE futures up 0.2%. The European Central Bank held rates unchanged overnight, giving markets some comfort at a time of geopolitical turmoil.
S&P 500 futures gained 0.6% while Nasdaq futures rallied 0.9%, driven by a 5% jump in Amazon shares in after-hours trading. In a statement after the U.S. close, the tech giant predicted higher holiday season sales and a stabilisation in its cloud business.
In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan bounced 0.9% on Friday after hitting a fresh 11-month low a day ago. It is, however, on track for a weekly loss of 0.8%, weighed down by high bond yields, the conflict in the Middle East and mixed U.S. earnings.
There are growing concerns the Israel-Hamas conflict could spread more widely in the Middle East, leading oil prices to jump more than $1 a barrel on Friday.
Two U.S. fighter jets struck weapons and ammunition facilities in Syria on Friday in retaliation for attacks on U.S. forces by Iranian-backed militia.
Tokyo's Nikkei rose 1.2%, but was still down 0.8% for the week.
China's blue chips gained 1%, and Hong Kong's Hang Seng index surged 1%, after data showed profits at China's industrial firms extended gains for a second month, adding to signs of stabilisation in the world's second-largest economy.
Mainland property developers listed in Hong Kong surged 2.8%, and tech giants rose 1.8%.
"The ride for shares is likely to remain volatile in the near term," said Shane Oliver, chief economist at AMP.
"But several things should help shares by year end - seasonality will become positive in the next two months; inflation is likely to continue to fall which should take pressure off central banks allowing them to starting easing next year; and any recession is likely to be mild."
U.S. data overnight confirmed a resilient economy with inflation easing, feeding soft landing hopes. The U.S. economy grew almost 5% in the third quarter, while underlying inflation subsided considerably during the quarter.
That fuelled hopes the closely watched U.S. personal consumption expenditures (PCE) for September - the Fed's preferred gauge of inflation - are likely to surprise on the downside as well when released later on Friday.