The U.S. dollar stabilized in early European trade Friday ahead of the release of key inflation data, while the Japanese yen edged lower after the Bank of Japan on Friday maintained its ultra-low interest rates and dovish stance.

Asian equities gained for a third straight day on Thursday, on growing hopes that major central banks could start slowing the pace of interest rate hikes, with the European Central Bank's meeting later in the day in focus for further clues.

The dollar stood close to a more than one-month low against a basket of currencies on Thursday, amid growing hopes that the U.S. Federal Reserve will shift to less aggressive interest rate hikes to temper recession risks.

Oil prices rose on Thursday, extending a more than 3% rally in the previous session, boosted by record U.S. crude exports and a weaker U.S. dollar, though gains were capped in Asia due to lingering fears over slack demand in China.

U.S. auto retail sales are expected to rise in October as supply chain snags ease, making more vehicles available at dealerships amid higher demand, an industry report from consultants J.D. Power and LMC Automotive showed on Wednesday.

British car production dropped 6% in September, an industry body said on Thursday, as the sector continues to bear the brunt of high energy costs, supply-chain snags and component shortages.