The U.S. dollar held steady against peer currencies on Friday after rebounding from a two-week low, as traders braced for a key jobs report due later in the day and grew cautious over tensions in the Middle East.

Most Asian stocks rose on Thursday, recovering a measure of steep losses clocked over the past two sessions, although sentiment still remained fragile after a devastating earthquake in Taiwan. 

Euro zone inflation fell unexpectedly last month, solidifying the case for the European Central Bank to start lowering borrowing costs from record highs.

Japan's economic output recovered to full capacity for the first time in about four years in the October-December quarter, a positive sign that may allow the central bank to raise interest rates again.

Recent economic indicators suggest that the Chinese economy picked up pace in recent months, putting the country on track to potentially achieve the government’s annual 5% gross domestic product target, Citi analysts said in a note.

The U.S. private sector added far more jobs than expected in March, pointing to continued strength in the labor market that may impact how Federal Reserve policymakers approach potential interest rate cuts this year.