Nikkei slips 0.2%
Japan's Nikkei 225 index crossed the 20,000 milestone for the first time since April 2000 at Friday's open, but quickly pulled back seemingly on the back of profit-taking and as the dollar-yen ticked down slightly to 120.5.
The bourse settled at 19,937 on Thursday - a 15-year peak for the second straight session - as foreign investors jumped in amid expectations that Japan Inc will start coughing up more cash to shareholders.
According to Ben Collett, head, Japan & Asian Equities at Sunrise Brokers, the Nikkei's rally still has legs: "The long-term outlook for the market, given the Bank of Japan's policy and what they will do for the yen, looks pretty good."
Index heavyweight Fast Retailing is in the spotlight after upgrading its forecast for annual profit and sales projection as sales for its casual wear brand Uniqlo grew quicker-than-expected. The stock was up 2.5 percent, hitting fresh record highs.
Lawson dived 4.3 percent, chalking up its biggest one-day drop in two years, after the convenience store operator's earnings guidance came in below market expectations.
Read MoreNikkei's rally: Here's who is buying and why
Mainland indices choppy
China's Shanghai Composite index bounced up nearly 2 percent to a seven-year high as latest inflation data signaled a favorable environment for further government stimulus.
Lenders were among the most active stocks; China Everbright Bank rallied 3.7 percent, while Agricultural Bank of China and Bank of Communications surged 1.1 and 2.1 percent each.
Read MoreChina's tourism will defy slowdown: Ctrip CEO
In Hong Kong, the Hang Seng index rebounded back into positive territory, rising 1.3 percent to its highest level since January 2008. Meanwhile, the Hang Seng China Enterprises Index of Hong Kong-listed mainland companies notched up 1.7 percent.
The surge in buying over the past three sessions was sparked by Beijing's decision to let mainland money managers buy H-shares last week, as well as a recent move by the China Insurance Regulatory Commission to allow mainland insurance firms to invest in Hong Kong's Growth Enterprise Market for the first time.
"What they are trying to do is to take the steam out of China's local market and redirect some of the liquidity into Hong Kong [so that] eventually Hong Kong will be at a very high level," Viktor Shvets, Asia head of Strategy Research at Macquarie, told CNBC Asia's "Squawk Box."
GF Securities - the mainland's fourth-largest securities firm by assets - soared over 30 percent to HK$25.40 in its market debut on Friday. The Shenzhen-listed company had priced its shares at HK$18.85 - the top of the indicative range - raising $3.6 billion, according to an April 2 statement.