The Dow Jones industrial average closed up 14 points, a gain of 0.07 percent, the Nasdaq composite rose almost 40 points or 0.64 percent and the S&P 500 gained 3 points or 0.13 percent.
The strength on Wall Street is partly due to bargain hunting, with traders picking up stocks at reduced levels following the pullback seen over the past few sessions.
A Labor Department report showed its producer price index posted a surprise drop in July, down 0.1% for the largest slide in nearly a year.
Helping offset the geopolitical tensions was weaker-than-expected consumer price data for July, pointing to benign inflation that could make the Federal Reserve cautious about raising interest rates again this year. Top automaker Hyundai Motor fell 2.07 percent to 142,000 won.
In Asia, benchmarks in Hong Kong and South Korea - which had been one of the best performers of 2017 - closed down 2% and 1.7% respectively, Friday, putting the week's drop at 2.5% and 3.2%. Rival Advanced Micro Devices was also down 2.6 percent.
USA stocks were lower yesterday as investors rushed to safe-haven assets after President Donald Trump's "fire and fury" warning to North Korea escalated tensions with the nuclear-armed nation.
The Dow closed down 205 points Thursday, in its biggest decline since May 17, after U.S. President Donald Trump rejected criticism that his threats to release "fire and fury" had been too inflammatory.
"Of course it's all come at a time when share markets are due for a correction, so North Korea has provided a ideal trigger", he added.
United States stocks ended lower on Thursday, and Asian markets fell sharply, with Hong Kong's Hang Seng index dropping 2%.
Nevertheless, the geopolitical uncertainty looks set to continue, dealers said, following Trump's fresh warning Friday that the U.S. military is "locked and loaded" in the event of a misstep by the totalitarian state. "Hopefully Kim Jong Un will find another path!"
Trump was responding to North Korea's claim it was completing plans to fire four intermediate-range missiles over Japan to land near the US Pacific territory of Guam.
The Dow Jones industrial average lost 123 points, or 0.6 percent, to 21,923. Genesee & Wyoming (GWR) is posting a notable gain after reporting an increase in July traffic.
Declining issues outnumbered advancers on the NYSE 1,927 to 916.
Trucking and software stocks are also seeing notable strength in mid-day trading, while steel stocks have moved sharply lower on the day.
The S&P 500 lost 9.74 points, or 0.39 per cent, to 2,465.18. Germany's DAX fell 1.2 per cent, while the CAC 40 in France lost 0.7 per cent. Britain's FTSE 100 sank 1.4 per cent.
The Labor Department said its Consumer Price Index edged up 0.1 percent last month, which was below the 0.2 percent rise expected by economists polled by Reuters.