Markets in Asia retreated further on Friday, with Japanese stocks coming under pressure from fresh strength in the yen against the dollar.
In Japan, the Nikkei 225 tumbled 234.13 points, or 1.4%, to 16,412.25. For the week, the index eked out a gain of 1.9%
In Hong Kong, the Hang Seng index dwindled 196.17 points, or 1%, to 19,719.29
In Japan, shares of automaker Nissan retraced some of their initial gains to close up 4.1%, after the company took a 34% stake in rivals Mitsubishi Motors on Thursday, worth 237 billion yen ($2.17 billion U.S.). Nissan also released earnings on Thursday for the 12 months to March 31, 2016, which showed net income rising 14.5% on-year to $4.4 billion U.S.
Mitsubishi Motors erased early morning gains to finish down 1.7%.
The Japanese yen traded at 108.60 against the U.S. dollar after closing the previous session at 109.01.
Major export stocks ended mostly lower, with shares of Toyota down 1.8%, Honda off 2.2% and Canon down 0.1%. A stronger yen is usually a negative for exporters as it reduces their overseas profits when converted into local currency.
With a relatively weak Japanese economy, the strong yen is of no help and the expectation for the Bank of Japan to add stimulus remains
In central bank watch, the Bank of Korea kept its monetary policy unchanged, in a move that was widely expected. The Korean won strengthened against the U.S. dollar after the decision, with the dollar/won pair trading as low as 1,164 before moving up to 1,171.24
In Australia, resource stocks came under pressure. Major miners in the country such as Rio Tinto closed down 2.7%, Fortescue shed 1.7% and BHP Billiton was off by 2.1%
Energy plays closed mostly lower in Asia, with shares of Santos down 2.8%, Oil Search down 1.6% and Inpex off 4.2%.
CHINA
The CSI 300 Index lost 15.2 points, or 0.5%, to 3,074.94.
Chinese mainland oil stocks were mixed, with China Petroleum up 0.4% and PetroChina down 0.1%.
In China, the onshore yuan traded slightly weaker against the dollar, with the pair up 0.1% at 6.5225. Before the market opened, the People's Bank of China guided the yuan weaker by setting the dollar/yuan reference rate at 6.5246, a level not seen since early March this year. Thursday's fix was 6.4959.
In other markets
In Korea, the Kospi Index slid 10.5 points, or 0.5%, to 1,966.99
In Singapore, the Straits Times Index subtracted 10.48 points, or 0.4%, to 2,734.91
In Taiwan, the Taiex Index faded 54.36 points, or 0.7%, to 8,053.69
New Zealand’s NZX 50 dropped 6.6 points, or 0.1%, to 6,916.57
The ASX 200 sagged 30.31 points, or 0.6%, to 5,328.99
