Asia's factory activity remained weak in November on soft global demand, surveys showed on Friday, with mixed signs on the strength of China's economy clouding the outlook for the region's fragile recovery.

U.S. consumer spending rose moderately in October, while the annual increase in inflation was the smallest in more than 2-1/2 years, signs of cooling demand that bolstered expectations the Federal Reserve's interest rate hiking campaign was over.

Asian sharemarkets started the last month of the year on a cautious note after recent strong gains, though growing expectations Europe and the U.S. are poised to cut rates should help ease pressure on local currencies and central banks.

Oil prices fell in early Asian trade on Friday, extending losses after OPEC+ producers agreed to voluntary oil output cuts for the first quarter next year that fell short of market expectations.

U.S. Treasury Secretary Janet Yellen said on Thursday she believes the U.S. economy does not need further drastic monetary policy tightening to stamp out inflationary expectations and was on track to achieve a "soft landing" with strong employment.

The dollar was on the back foot on Friday, while the euro nursed steep losses as traders weighed data that showed inflation was easing, stoking expectations that interest rates had peaked and central banks would soon start cutting rates.