Asian stocks were poised for solid weekly gains on Friday as rising odds of the US Federal Reserve cutting rates in the near term helped cushion jitters around a US government shutdown that have pushed gold to record highs and weighed on the greenback.

The benchmark Hang Seng Index opened trading 65 points, or 0.24 percent, down at 27,221 despite US stocks ending at fresh records on Thursday, with mainland and South Korean markets closed.

Japan's Nikkei share average rallied to hover around an all-time high as euphoria around artificial intelligence gripped the market, sending chip stocks surging.

The tech-heavy Nikkei was at 45,668, a rise of 1.6 percent as of midday after earlier hitting 45,742, 110 points below the record that was hit last month.

The broader Topix advanced 1.3 percent.

The Nikkei Stock Average had opened trading for the day at 45,042, up 105 points, or 0.24 percent.

Australian shares were on track for their best week in two-and-a-half months as the market inched higher with gains in the technology and healthcare sectors outweighing losses in gold stocks.

The S&P/ASX 200 index rose 0.1 percent to 8,953 by midday.

The benchmark has gained 1.9 percent so far this week, putting it on track for its biggest weekly gain since the week ended July 18.

Investors have mostly shrugged off the government shutdown, the 15th since 1981, even as it resulted in suspension of scientific research, financial oversight and delayed crucial economic data, including the jobs report on Friday.

Part of the reason for the lack of market reaction is because historically shutdowns have had limited impact on economic growth and market performance.

Chen Weiheng, global investment strategist at JP Morgan Private Bank, said investors appear willing to give Washington time to resolve its disagreements, though a prolonged shutdown may start to move markets.

"For now, investors remain more focused on the potential impacts of the Fed’s rate-cutting cycle, trade and immigration policy, economic data, and corporate earnings," Chen said.

MSCI's index of Asia-Pacific shares was up 0.14 percent, just shy of the record high it touched on Thursday.

The index was set for an over 2 percent gain for the week and has risen 23 percent so far this year. With China and parts of Asia closed for a long holiday, volumes are likely to be thin in the region. (Reuters/Xinhua)