Global equity markets and oil prices bounced back on February 5 after data suggested that the vast U.S. services sector extended a three-year expansion in January, while business activity in the euro zone showed signs of recovery.

On Wednesday, Asian shares recovered as solid eurozone data overpowered the potential political turmoil in Spain and Italy but the prospect of a dovish new governor of the Bank of Japan dragged the yen to a new low.

The single currency rose against the yen and the dollar on Thursday after better-than-expected economic data indicated the worst of the economic crisis in the eurozone may have passed.

On Thursday, European shares weakened as investors braced for the first reading of the year on eurozone business activity for 2013 after data showed that the region's second-biggest economy, France, may be in recession.

The woes of Spanish banks seem to still alive with rising bad loans at Bankinter (BKT.MC) and Sabadell (SABE.MC) pointing to more pain as the banks are nearing the end of a deep clean of rotten property assets that severely affected profits last year.

Sabadell and Bankinter have been hit by big writedowns on soured real estate assets in the wake of the Spanish property crash.

The economy of China grew at its slowest pace in 13 years in 2012 through a year-end spurt supported by infrastructure spending and a jump in trade signaled the foundation for the stable growth path the country believes is important for economic reform may be in sight.

The government and Central Bank of Japan have agreed to set an inflation rate of 2 percent as a new target next week when the Bank of Japan will also be evaluating making an open-ended commitment to buy assets until the target is in sight.

New central bank policymaker Ian McCafferty said on Friday that restarting the asset purchase program of the Bank of England any time soon may give little help to the economy of Britain and risks raising inflation.

The ruling coalition of Iceland said on Monday that the country has suspended its European Union entry talks ahead of an election in April that may bring a more EU-sceptic government to power.

On Tuesday, Japanese shares surged to highs of 32 months on the back of the slide of the yen the previous day as expectations grew that the Bank of Japan will be prompted by strong political pressure to deliver bold monetary easing measures. Meanwhile, other Asian stock markets struggled.