(fxcue news) - Asian stocks steadied on Friday as strong U.S. GDP data and cooling inflation suggested a soft landing is in sight for the world's largest economy. Markets have raised their expectations for three rate cuts by the end of the year, with some economists expecting the Fed's first rate cut to be extra-large. It is believed the release of the PCE deflator, one of the Fed's preferred price gauges, later today will shed further lightly on the outlook for rates. China's Shanghai Composite recovered from an early slide to close 0.14 percent higher at 2,890.90. Hong Kong's Hang Seng index finished marginally higher at 17,021.31 after volatile trading. The Taiwan Weighted index tumbled 3.3 percent as markets reopened from a two-day closure due to a typhoon. Japanese markets closed lower, and the yen stabilized near a 12-week high against the dollar, heading into next week's Bank of Japan policy meeting where a 10 -bps rate hike may be on the table. The Nikkei average ended down 0.53 percent at 37,667.41, failing to sustain earlier gains. The broader Topix index settled 0.38 percent lower at 2,699.54. Hino Motors surged 12.8 percent and Canon added 6.7 percent after reporting strong earnings. Seoul stocks snapped a two-day losing streak, with financials and shipping firms leading the rebound. The Kospi average climbed 0.78 percent to 2,731.90. Samsung Heavy Industries jumped 8.4 percent after analysts said the profitability of shipbuilders will likely improve toward the end of the year. Hana Financial, KB Financial and Shinhan Financial surged 4-6 percent. Australian markets rebounded, with mining, financial and property developers leading the surge. The benchmark S&P/ASX 200 rose 0.76 percent to 7,921.30 while the broader All Ordinaries index inched up 0.73 percent to finish at 8,153.40. Mineral Resources rallied 3.5 percent after announcing its FY production results. Pilbara Minerals climbed 3.8 percent. Bellevue Gold plunged 21.6 percent after completing a capital raising. Across the Tasman, New Zealand's benchmark S&P/NZX-50 index dropped 0.38 percent to 12,349.47. U.S. stocks fluctuated before ending mixed overnight as strong Q2 GDP data offset more tech weakness. Data showed the U.S. economy grew at an estimated 2.8 percent annual rate from April through June, double the rate from the prior quarter. Inflation pressures subsided, with the personal consumption expenditures (PCE) price index, excluding the volatile food and energy components, increasing at a 2.9 percent rate, down from the prior reading of 3.7 percent in the first quarter. Durable goods orders plummeted in June while jobless claims fell more than last week, other reports revealed. The Dow edged up 0.2 percent while the S&P 500 gave up half a percent and the tech-heavy Nasdaq Composite shed 0.9 percent.