Japan's wholesale prices in January rose 9.5% from a year earlier, data showed on Friday, adding to growing signs of inflationary strains that could keep the central bank under pressure to phase out its massive stimulus programme.

China's January factory gate prices fell more than economists expected, suggesting that flashes of domestic demand that had stoked consumer prices after the zero-COVID policy ended are not yet strong enough to rekindle upstream sectors.

Oil prices fell in early trade on Friday but were headed for a weekly gain with the market continuing to seesaw between fears of a recession hitting the United States and hopes for strong fuel demand recovery in China, the world's top oil importer.

Asia-Pacific stocks fell on Friday, slumping toward a second weekly loss as investors fretted about the potential for further Federal Reserve tightening and the effect on the U.S. economy.

The dollar was on the back foot on Friday after an overnight slide as investors tread with caution ahead of U.S. inflation data next week, with worries over an economic slowdown and the pace of the Federal Reserve's rate hikes hitting sentiment.

U.S. wholesale inventories recorded their smallest increase in nearly 2-1/2 years in December, suggesting that businesses were holding back on placing new orders for goods amid a stagnation in sales as higher interest rates curb demand.