European shares were set for a stronger open on Friday and the euro steadied as investors hoped for a big policy move from European finance ministers to combat the region's growing debt crisis.

Coordinated central bank action around the world to boost liquidity for European banks, at a time when some institutions have been shut out of short-term lending markets, has raised speculation that policymakers may take bold steps to hold the euro zone together.

U.S. Treasury Secretary Timothy Geithner holds talks with European finance ministers in Poland on Friday on the possibility of leveraging the euro zone's bailout fund to help resolve the debt crisis.

Equity markets in Asia rallied, taking heart from the S&P 500 closing above the 1200 level, which had proved to be a stiff resistance over the past two weeks.

Japan's Nikkei closed up 2.3 percent, climbing above a steep trendline formed off intra-day highs in August and September.

"With today's rise, it is like we are cautiously climbing up a wall but at the same time we're thinking that the wall may collapse if we go up any further," said Kenichi Hirano, a strategist at Tachibana Securities.

The benchmark MSCI index of Asia Pacific stocks outside Japan rose 2.2 percent , with financials providing the biggest boost.

The index has rebounded more than 4 percent from a 14-month low hit on Wednesday. But it is still down more than 13 percent in the year to date after a global market rout in August. Read More