 "Asia stocks fall on Fed officials' hawkish views, oil near 8-week high")
Asian stocks retreated on Friday and the dollar edged up from a near eight-week low after some Federal Reserve officials reiterated the case for raising interest rates in coming months.
MSCI's broadest index of Asia-Pacific shares outside Japan pulled back 0.6 per cent.
That would put it on track to end the week, during which it hit a 1-year high, 0.3 per cent lower.
Japan's Nikkei erased earlier gains to trade 0.1 percent lower, set for a weekly loss of 2.6 per cent.
South Korea's Kospi also surrendered earlier increases to slip 0.1 per cent, on track for a 0.1 per cent weekly gain. Australian shares added 0.2 per cent, heading for a 0.2 per cent decline for the week.
China's CSI 300 index and the Shanghai Composite slid 0.2 per cent, but were still up 1.9 per cent and 1.6 per cent for the week, respectively.
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US stocks eked out gains on Thursday following upbeat earnings and forecasts from Wal-Mart and as higher oil lifted energy shares.
The dollar recovered after more hawkish comments from New York Fed President William Dudley and San Francisco Fed President John Williams.
It had fallen to the lowest level since June 24 overnight in response to the Fed's July meeting minutes this week saying more data is needed before interest rates can rise.
"There were a few gyrations around expectations for when the Fed will next raise interest rates, with the minutes from the July Fed meeting presenting a relatively dovish picture but regional Fed presidents Williams and Dudley pushing back against market expectations that look to be too dovish," Shane Oliver, head of investment strategy at AMP Capital in Sydney, wrote in a note.
Dudley, who said earlier this week that the central bank could possibly hike rates in September, reinforced his hawkish message on Thursday.
Williams also signaled support for an interest rate hike in the coming months, warning that waiting too long could see the economy overheat. Williams does not have a vote on Fed policy this year, but his views are seen as influential due to his longstanding relationship with Fed Chair Janet Yellen.
The dollar index, which tracks the greenback against a basket of six peers, rose 0.2 per cent to 94.367. It is down 1.4 per cent for the week.
The US currency gained 0.4 per cent to 100.23 yen. It is still on track to lose 1.1 per cent on the week.
The euro slipped 0.2 per cent to $1.13320 after touching $1.1366 overnight, its highest since June 24. The common currency is headed for a gain of 1.6 per cent this week.
Oil prices have surged this week on expectations of revived talks by key exporters to freeze output levels.
Global benchmark Brent crude pulled back 0.1 per cent to $50.84, after climbing as much as 2.4 per cent to an eight-week high of $51.05 on Thursday. It is poised to add 8.3 per cent for the week.
US crude, which added as much as 3.4 per cent on Thursday, extended gains 0.1 per cent to $48.28 a barrel on Friday, close to the six-week high of $48.38 touched overnight. It is en route to rise 8.5 per cent this week.
Both benchmarks have risen more than 20 per cent from a lowin early August. The rapid rise puts oil in a technical bull market.