Chinese consumer inflation contracted in May from the prior month, data showed on Friday, while factory gate inflation sank at its fastest pace in seven years as a slowing post-COVID economic recovery kept spending limited. 

The number of Americans filing new claims for unemployment benefits surged to the highest level in more than 1-1/2 years last week, but layoffs are probably not accelerating as the data covered the Memorial Day holiday, which could have injected some volatility.

Bank of Japan Governor Kazuo Ueda said on Friday the country's corporate price-setting behaviour was showing changes that could work to push up inflation more than expected.

The International Monetary Fund on Thursday urged the U.S. Federal Reserve and other global central banks to "stay the course" on monetary policy and remain vigilant in combating inflation.

Asia-Pacific equities rose to their highest level since mid-February on Friday, taking cues from an overnight Wall Street rally as market bets firmed for the Federal Reserve to skip a rate hike next week.

Oil prices looked set to post their second straight weekly loss as prices continued to fall on Friday over demand concerns and scepticism that the United States and Iran could strike a nuclear deal.