Chinese shares were in the red after returning from a week-long holiday, as a private Chinese manufacturing survey missed forecasts and China's central bank surprised markets by raising its short-term lending rates.
The Nikkei 225 Index gained 3.62 points to finish the week at 18,918.20, after the Bank of Japan December meeting minutes showed that several policymakers said that they should not set a rigid range in trying to achieve its target of guiding its government bond yields to around zero percent.
In Hong Kong, the Hang Seng Index dropped 55.31 points, or 0.2%, to 23,129.21
Sony was surged up 5%, after it reported its third-quarter earnings on Thursday, as sales fell by 7% on-year and operating profits declined 54% mostly on the back of a goodwill impairment in the pictures segment.
But Sony's semiconductor unit exceeded expectations sharply, as volume of sales for the image sensors for mobile devices progressed to 80,000 units per month, up from 73,000 units per month as of July.
Murata Manufacturing shares were up 4.5% after the Nikkei Business Daily reported that it was in talks with Samsung Electronics to make batteries for the Galaxy S8 smartphone models.
In South Korea, markets were flat after the Bank of Korea said the country's seasonally-adjusted current account surplus in December rose to a six-month high at $8.57 billion.
Shares of Samsung Electronics were off 0.1%. The South Korean electronics conglomerate received a warm welcome by U.S. President Trump over a possible new U.S. plant for Samsung's home appliances.
The Australian benchmark was weighed by its energy sub-index, which slipped 1.2%, and the materials sub-index, which fell 2.2%
Shares of Virgin Australia were down 4.7% on Friday. Tigerair Australia, a subsidiary of Virgin Australia Holdings, said would permanently quit flights to Bali, after Indonesian authorities switched to a new operating model.
Last month, Indonesia had revoked Tigerair Australia's permission to fly, saying it did not meet charter flight regulations. Qantas Airway stock was also in the red, down 1.5%
The Australian dollar fetched $0.7643, hitting above $0.76 U.S. on Thursday after it reported a record trade surplus in December. The U.S. dollar/yen pairing was trading at 112.63, lower than last week's levels above 114.
CHINA
In Shanghai, the CSI 300 returned from a prolonged Lunar New Year holiday to fall 23.47 points, or 0.7%, to 3,364.49
The People's Bank of China surprised markets by hiking short-term interest rates, also known as reverse repurchase agreements (repos), by 10 basis points to 2.35%
China Caixin manufacturing purchasing managers' index (PMI) for January slowed to 51.0 from December's 47-month record high of 51.9, and missed a poll forecast of 51.2. The manufacturing PMI provides an overall view of activity in China's manufacturing sector, and is a closely watched indicator of economic health.
The week-long holiday was not without controversy, with Chinese billionaire Xiao Jianhua abducted from Hong Kong's Four Seasons hotel last week by Chinese agents. Xiao had reportedly helped China's richest families and leaders move money around, according to some media outlets.
Companies directly or indirectly controlled by the Xiao's conglomerate Tomorrow Group saw their shares plummet amid uncertainty over his fate on Friday
Sugar products maker Baotou Huazi plunged 10%, the daily downward limit on the Shanghai Stock Exchange, while Chemicals manufacturer Baotou Tomorrow Technology dropped 5% and Cement supplier Xishui Strong Year Inner Mongolia tumbled 10%
In other markets
In Taiwan, the Taiex Index recovered 26.59 points, or 0.3%, to 9,455.56
In Korea, the Kospi index eked up 2.15 points, or 0.1%, to 2,073.16
In Singapore, the Straits Times Index slid 2.14 points, or 0.1%, to 3,041.94
In New Zealand, the NZX 50 recouped 40.84 points, or 0.6%, to 7,094.38
In Australia, the S&P/ASX 200 dipped 23.85 points, or 0.4%, to 5,621.58
