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Asia Mostly Lower on N. Korea Nuke Test

Asian markets ended mostly lower on Friday after North Korea claimed its fifth nuclear test and amid disappointment following the European Central Bank's (ECB) policy decision.

The Nikkei 225 index in Tokyo inched up 6.99 points to 16,965.76,

In Hong Kong, the Hang Seng Index bolted higher 180.36 points, or 0.8%, to 24,099.70, after reports that China was allowing mainland insurers participate in the Shanghai-Hong Kong stock connect.

Financials led the gains in Hong Kong; Bank of East Asia popped 2.9%, Bank of China (Hong Kong) added 1.9% and HSBC ended up 0.8%.

The ECB surprised markets on Thursday by deciding not to extend the deadline of its bond-buying program. It also lowered its growth and inflation forecasts for 2017 and 2018.

South Korean markets headed lower, after North Korea said it tested a miniaturized nuclear warhead in response to the "threats and sanctions from hostile elements."

Samsung also weighed on the Kospi. Shares tumbled 4.2% as the U.S. Federal Aviation Administration urged passengers not to turn on or charge their Galaxy Note 7 smartphones during flights and not to stow them in checked baggage due to concerns over the fire-prone batteries.

Also in South Korea, the central bank held interest rates at 1.25% for the third straight month at its policy meeting, as expected, as it took a cautious approach to increasing household debt while awaiting the Fed's next move.

Australian markets dipped, dragged by a 1.4% drop in its heavily-weighted financials sub-index, partly offset by gains in the energy and materials sectors.

CHINA

The Shanghai CSI 300 fell 21.52 points, or 0.6%, to 3,318.04

On the data front, China's August inflation grew at its slowest pace year-on-year since October 2015.

In other markets

The Taiex Index in Taiwan tumbled 98.01 points, or 1.1%, to 9,164.88

In Korea, the Kospi index faltered 25.86 points, or 1.3%, to 2,037.87

In Singapore, the Straits Times Index moved lower 21.25 points, or 0.7%, to 2,873.33

In New Zealand, the NZX 50 dropped 66.13 points, or 0.9%, to 7,468.61

The ASX 200 lost 46.57 points, or 0.9%, to 5,339.18