Shares rebounded in Asia on Friday after an early sell-off, though Tokyo's benchmark declined as investors reacted to reports of a growing number of cases of a new virus in Japan and China.

Global markets edged higher on Thursday though trading was subdued after the Christmas holidays. Chinese markets surged after the government announced a relaxation of residency restrictions for small and medium cities that boosted property stocks.

Japanese stock prices declined and Chinese markets were little-changed Wednesday while trading in most other Asian economies was closed for Christmas Day.