TOKYO: Asian shares fell and the dollar held near an 8-1/2-month peak on Friday, while the euro hovered around seven-month lows on expectations of additional stimulus from the European Central Bank next week.

The broadest index of Asia-Pacific shares outside of Japan slid 0.5 percent, extending losses for the week to 0.7 percent.

Japan's Nikkei reversed earlier gains to slip 0.3 percent, but was on track for a weekly gain of 0.2 percent. The Shanghai Composite index retreated 0.6 percent, heading for a 0.5 percent drop for the week.

The dollar index against a basket of major currencies was little changed at 99.852, after scaling 100.170 earlier in the week, the highest since March. It is up 0.3 percent for the week.

U.S. stock futures rose 0.3 percent to their highest level since Nov. 9 after a market holiday on Thursday for Thanksgiving Day.

Although the U.S. holiday thinned global financial trade, the pan-European FTSEurofirst 300 index gained 0.9 percent on Thursday to end at three-month high, led by German shares.

"The DAX/S&P ratio has pushed up 10.7 percent since October, showing robust outperformance of the German market," Chris Weston, chief market strategist at IG in Melbourne, wrote in a note.

"The correlation between a weaker EUR/USD and higher DAX/S&P ratio is strong."

The European Central Bank meets next Thursday and most in the market expect it to expand its asset purchase programme and lower its deposit rate, the rate at which banks park excess funds with it.

Traders are now speculating that the ECB could cut rates more than the previous market consensus of a 0.10 percentage point reduction.