Japanese shares ended lower as investors took profits on recent advancers such as Toyota Motor Corp. and Honda Motor, while a stronger yen also weighed on the export sector. Regional indexes ended mixed.
In Tokyo, the Nikkei 225 index fell 262.08 points, or 1.51 percent, to 17,091.59 while Hong Kong's Hang Seng Index advanced 181.02 points, or 0.90 percent, to 20,206.60.
The drop in Tokyo might be a sign the market was correcting after the index's nearly 6 percent jump in December. Blue chips were also dragged down by lower raw material prices that hurt commodity stocks.
Elsewhere:
BANGKOK: Thai shares fell 3.1 percent to end at 628.19, adding to Thursday's 1.7 percent fall on broad selling amid sour market mood and political uncertainties.
KUALA LUMPUR: Malaysian shares climbed as retail investors bought small and speculative stocks amid positive market sentiment. The Kuala Lumpur Composite Index of 100 blue chips rose 0.2 percent to 1,120.40 points.
MANILA: Philippine shares declined for the second straight session, dragged down by profit-taking in Philippine Long Distance Telephone Co. The benchmark Philippine Stock Exchange Index shed 16.35 points, or 0.5 percent, at 2,996.39.
MUMBAI: Indian shares ended flat as a fall in Reliance Communications was offset by gains in banks. The Bombay Stock Exchange's benchmark 30-stock Sensitive Index, or Sensex, ended down 0.1 percent, or 11.19 points, at 13,860.52 points. On the National Stock Exchange, the 50-stock S&P CNX Nifty fell 5.4 points, or 0.1 percent, to 3983.40.
SEOUL: South Korean shares fell to their lowest level in more than three weeks amid renewed jitters over North Korea's nuclear program. The Korea Composite Stock Price Index fell 11.53 points, or 0.8 percent, to 1,385.76.
SHANGHAI: China's shares fell as bank stocks plunged after the market hit record highs for seven trading sessions. The benchmark Shanghai Composite Index closed down 2.7 percent at 2641.33. The Shenzhen Composite Index for China's smaller second market rose 1.5 percent to 562.23.
SINGAPORE: The Straits Times Index closed slightly higher after trading lower in the morning, and traders said it could move sideways or higher in the next few weeks. The STI closed up 5.2 points, or 0.2 percent, to finish at 3029 points.
TAIPEI: Taiwan shares fell slightly as investors took profits following the stock index's failure this week to move above the key 8,000 level. The Weighted Price Index of the Taiwan Stock Exchange dropped 98.94 points, or 1.3 percent, to 7,835.57.
WELLINGTON: New Zealand stocks closed higher, following firm offshore leads to end a quiet week on a positive note. The benchmark NZX-50 index rose 6.3 points, or 0.2 percent, to 4,035.26 on thin volumes.
SYDNEY: The Australian share market dropped after hurt by declines in big mining companies. The benchmark S&P/ASX200 index fell 12.8 points, or 0.2 percent, to 5,572.0, while the All Ordinaries lost 14.1 points to 5,549.8.
With files from wire services
