China's manufacturing activity unexpectedly fell in May, keeping alive calls for fresh stimulus as a protracted property crisis in the world's second-largest economy continues to weigh on business, consumer and investor confidence.

The U.S. economy expanded by less than anticipated in the first quarter, while a key measure of inflation slowed by more than initially expected.

Asian stocks rose on Friday and were poised for the fourth month of gains, while the dollar drifted lower, keeping the yen steady as investors await inflation readings from Europe and the U.S. that will likely dictate the path of interest rates globally.

Oil prices fell in Asian trade on Friday, extending recent losses after unexpected builds in U.S. product inventories drummed up concerns over sluggish fuel demand, while signs of weakening business activity in top importer China weighed.

The dollar was licking wounds against peer currencies on Friday after a downward revision to U.S. GDP for the first quarter suggested room for rate cuts this year, while investors braced for inflation data.

Vietnam's annual inflation rate edged up to 4.44% in May, official data showed on Wednesday, nearing the government's target ceiling of 4.5% for the year and a potential challenge to efforts to boost credit growth to drive activity.