Japanese household spending rose less than expected in July as consumers remained wary of loosening their purse strings in the face of higher prices, possibly complicating the central bank's plans to hike interest rates further in coming months.

U.S. Treasury Secretary Janet Yellen said on Thursday that the U.S. still has a "good healthy labor market" even though the pace of job creation has slowed in recent months.

Oil prices edged up in early trading on Friday as investors weighed a big withdrawal from U.S. crude inventories and a delay to production hikes by OPEC+ producers against mixed U.S. employment data.

The U.S. dollar sagged near a one-week low versus major peers on Friday with job market indicators sending mixed signals ahead of crucial monthly payrolls data later in the day that is almost certain to set the pace for Federal Reserve policy easing.

Asian shares were subdued on Thursday, with Japanese stocks sliding to their lowest in three weeks as investors sought safety, pushing the yen to a one-month high while U.S. economic worries boosted prospects for the Federal Reserve to cut rates.

Oil prices edged up after plunging to multi-month lows previously as major producers may delay an output increase planned for next month and U.S. inventories fell, though the gains were limited by persistent demand concerns.