A surprisingly large rise in underlying price pressures in the euro zone in February reinforced the case for the European Central Bank to keep raising interest rates, nudging bond yields higher and keeping the euro near one-week highs on Thursday.

The Bank of Japan (BOJ) must always stand ready to mitigate the side-effects of prolonged monetary easing, even as it maintains massive stimulus, board member Hajime Takata said on Thursday.

Core consumer inflation in Japan's capital Tokyo slowed in February as the effect of government energy subsidies kicked in, though an index stripping away the effect of fuel hit a fresh three-decade high in a sign of broadening inflationary pressure.

The number of Americans filing new claims for unemployment benefits fell again last week, pointing to sustained labor market strength and adding to financial market fears that the Federal Reserve could keep hiking interest rates for longer.

Asian shares rose on Friday after Wall Street reversed losses on signals of a measured policy tightening approach from the U.S. Federal Reserve as well as on prospects of a solid economic recovery in China.

Oil prices fell slightly on Friday as traders weighed the prospect of more economic headwinds from rising interest rates, although renewed optimism over a rebound in Chinese demand put prices on course for strong weekly gains.