Asian stocks followed Wall Street lower in early trade on Friday, while oil prices held close to the highest level in almost a month on optimism over an OPEC plan to curb output. 

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MSCI`s broadest index of Asia-Pacific shares outside Japan fell 0.5%, on track for a 0.4% drop for the week. It is poised for a 2.2% gain in September, and a 9.5% jump in the third quarter. 

Japan`s Nikkei retreated 1.5% after sluggish consumption data. It is down 1.7% for the month, but set to end the quarter 5.7% higher. 

Some Bank of Japan board members doubted whether the central bank`s overhaul of its massive stimulus programme, announced last week would enhance flexibility of monetary policy, a summary of opinions at the central bank`s September rate review showed on Friday.

Japanese consumer prices in August fell 0.5% from a year earlier, missing expectations. Consumer prices in the Tokyo area in September dropped 0.5%, the fastest year-on-year drop since 2013. 

Japanese industrial output rose 1.5%, beating expectations for a 0.5% rise. 
South Korea`s KOSPI slipped 0.8% after manufacturing activity contracted for a second month in September to hit a 14-month low, and August industrial output posted the biggest decline in 19 months.

On Thursday, Wall Street lost about 1% as Deutsche Bank shares slumped to a record low after a report that trading clients had withdrawn excess cash and positions held in the largest German lender.

The bank`s US shares closed down 6.7% at $11.48 after earlier falling to as low as $11.185. The immediate cause of Deutsche`s crisis is a fine, disputed by Deutsche, of up to $14 billion by the US Department of Justice over its sale of mortgage-backed securities.

Deutsche`s woes, alongside a grilling of Wells Fargo`s chief executive by US lawmakers amid a call for the bank to be broken down due to a scandal over its opening of client accounts without agreement, helped push the S&P bank index down 1.6%. 

Oil prices extended gains, rising more than 1% on Thursday, on optimism over an agreement by OPEC to cut output, but the rally was limited by doubts the reduction would make a substantial dent in the global crude glut.

US crude futures added 1.7% to $47.83, after climbing to as high as $48.32, the highest level in almost five weeks. They were little changed on Friday. 

Brent crude rose 1.1% to $49.24 on Thursday, after earlier touching a three-week high of $49.24. 

The US dollar was little changed at 101.09 yen , heading for a flat end to the week, but down 2.2% for September, and 2% for the quarter. 

While the yen is headed for its third straight quarter of gains, speculation that Japanese investors may buy more foreign assets in their new business half-year starting from Oct. 1 could stem the Japanese currency`s gains in the near term.

The euro was also steady at $1.12165, on track for a 0.1% decline for the month, but up 1% for the quarter. 

The Indian rupee posted its biggest drop since June on Thursday, after Indian officials said elite troops crossed into Pakistan-ruled Kashmir and killed suspected militants preparing to infiltrate and carry out attacks on major cities, in a surprise raid that raised tensions between the nuclear-armed rivals.