Shares in Shanghai ended at a record high on Thursday, though other Asian markets were softer as investors booked profits from recent strong rallies.
In Tokyo, Nikkei 225 index shed 156.33 points, or 0.9 percent, to 17,702.09 points while in Hong Kong, the blue chip Hang Seng Index fell 110.70 points, or 0.5 per cent, to 23,362.18.
Investors digested a string of earnings released this week. Sharp Corp. fell 2 percent to 2,175 yen ($18) on worries over its earnings prospects despite solid figures Wednesday.
Nomura Holdings jumped 6.6 percent to 2,260 yen ($18.8) as its first quarter net profit more than tripled even though the brokerage reported losses in its U.S. mortgage-backed securities business due to mounting problems among subprime lenders.
Chinese shares set a record high after the government eased overseas investment limits for insurance companies.
China's Shanghai Composite rose 0.5% to a record finish of 4,346.46. The Dow Jones China 88 index, a measure of 88 highly liquid stocks listed in Shanghai and Shenzhen, rose 0.6% to 374.62.
The gains came after China's insurance regulator Wednesday tripled the percentage of assets that qualified investors can invest abroad to 15%.
ELSEWHERE:
BANGKOK: Thai shares ended up 0.1 percent at 884.16 in moderate trade, as profit taking pared gains in energy blue chips.
JAKARTA: Indonesian shares fell 1.2 percent at 2,365.26 in thin trade.
KUALA LUMPUR: Malaysian shares edged up, adding 0.1 percent to close at 1,381.50 in heavy trade.
MANILA: Philippine shares climbed after three days of losses, aided by Wall Street's advance overnight. The benchmark 30-company Philippine Stock Exchange Index rose 14.17 points, or 0.4 percent, at 3,659.68.
SEOUL: South Korean shares fell back below the 2,000-point level, succumbing to profit-taking toward the end of the day after ending above the important barrier for the first time in the previous session. The Korea Composite Stock Price Index, or Kospi, ended down 40.68 points, or 2 percent, at 1,963.54, after marking an all-time high of 2015.48 in early trade.
SINGAPORE: Singapore's shares fell as fears of a general overvaluation sapped the market's recent momentum. The benchmark Straits Times Index closed down 53.81 points, or 1.5 percent, at 3,579.73.
TAIPEI: Taiwanese shares fell on profit-taking, primarily by foreign investors. The Weighted Price Index of the Taiwan Stock Exchange shed 173.71 points, or 1.8 percent, to close at 9,566.42 on extremely high volume.
WELLINGTON: New Zealand shares held their own to close flat, with most blue chip stocks gaining slightly as the nation's central bank signaled a possible end to its tightening cycle after raising rates for the fourth consecutive time. The benchmark NZX-50 closed almost flat, up 0.8 point, at 4,325.78.
SYDNEY: Australian shares slid on interest rate worries caused by Wednesday's higher-than-expected CPI data, despite a modest recovery on Wall Street. The benchmark S&P/ASX 200 closed down 82 points or 1.3 percent at a three-week low of 6258.5.
With files from wire services
