Japan's stock market finished Thursday's session 7 percent lower, in a hugely volatile session which saw the Nikkei gain 2 percent in early trade only to dive to a one-week low late in the session.
Asian stocks widened losses on Thursday as investors worried over rising inflationary pressures in China, but South Korean shares rallied over 1 percent after the Bank of Korea surprised markets with a 25 basis point cut.
Australian stocks approached their highest levels in nearly five years on Wednesday after China's trade balance swung to a surplus in April while Japan's benchmark Nikkei remained the region's out performer, extending gains to hit a fresh near five-year high.
Sentiment in Asia turned cautious on Friday ahead of a key jobs report in the U.S. but Shanghai stocks rallied as investors cheered new measures by the Chinese central bank to open up its capital markets.
Australian stocks retreated from Tuesday's four-and-a-half-year high after Chinese manufacturing data revealed the nation's economic recovery may not be on solid footing while the Nikkei 225 extended losses as the yen strengthened.
Asia's equity markets rose to fresh peaks on Tuesday, fueled by hopes of central bank stimulus but Japanese shares fell, weighed down by mixed economic data.
Asian shares edged up on Friday after China's trade data for January beat forecasts to underscore a recovery trend, but prices were capped by investors seeking to book profits before next week's Chinese New Year holidays.