U.K. stocks rose Thursday, posting their highest close in a week, as retail shares strengthened on sales data that blew past expectations. Retail shares were pushed up as October retail sales leapt above expectations, with the annual rate of 7.4% from the year-ago period the highest rate since April 2002, the Office for National Statistics said.

U.S. stocks closed slightly higher on Thursday as an improving economic picture and greater clarity on Federal Reserve policy allowed the market's postelection uptrend to continue, putting the S&P 500 and Dow within reach of attaining new record closing highs.

A weaker yen sent Japan's Nikkei to a 10-month high on Friday, helping drive gains across key Asian markets as robust U.S. economic data buoyed expectations of an interest-rate hike next month.