Nikkei drops 1.4%
Japanese shares fell to an over one-week low, extending losses into a third straight session. For the week, the benchmark Nikkei index was the region's sole loser, down 0.7 percent - its third weekly loss in a month.
Meanwhile, the yen continued to extend gains after hitting a more than one-month high of 101.3 per dollar in the previous session, which weighed on exporters. Among the biggest losers, Sony lost 3 percent after closing down 6 percent in the previous session while index heavyweight SoftBank closed down 3.5 percent.
Defense-related shares were in focus after Prime Minister Abe called for a reinterpretation of the country's pacifist constitution to allow the use of collective self defense.Mitsubishi Heavy and Kawasaki Heavy Industries lost nearly 2 and 1.6 percent, respectively.
On the economic front, revised industrial output for March rose 1.4 percent from February.
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China shares mixed
China's benchmark Shanghai Composite managed to end just above the flatline after hitting a one-week low earlier in the session. The index was little changed after data showed foreign direct investment rose an annual 3.4 percent in April.
Financials were in focus on news that China is relaxing rules for securities companies to allow them to expand their business and offer new products. Citic Securities eased 2.5 percent while China Everbright Securities was flat.
Meanwhile, Hong Kong shares snapped their five-day winning streak with the Hang Seng Index falling 0.1 percent. CITIC Pacific dipped 0.3 percent after saying that it secured $5.1 billion to help fund a purchase of $36 billion in assets from its state-owned parent company.