Asia shares join US rout; Nikkei posts biggest weekly fall in 3 years

Asian stocks took a hit on Friday, with the Nikkei posting its biggest weekly fall since the March 2011 nuclear disaster, as losses on Wall Street overshadowed benign Chinese data.

Tech and internet shares from Tokyo to Seoul bore the brunt of losses after the Nasdaq Composite declined 3 percent overnight, its worst session in over two years as U.S. momentum stocks resumed their declines.

The Dow and S&P 500 meanwhile tanked 1.6 and 2 percent, respectively, despite data showing that jobless claims hit a near seven-year low.

Asian markets were little changed after China's consumer prices rose 2.4 percent in Marchfrom the previous year, just shy of a Reuters poll for a 2.5 percent increase. But producer prices came in worse-than-expected, falling at an annual 2.3 percent.

"With inflation running at a comfortable margin below the government's 2014 goal of 3.5 percent, the current environment in some ways serves as a litmus test for the government's commitment to allowing a more decisive role for market forces in the economy, " said Bill Adams, senior international economist for PNC Financial Services.

ASX 200
CNBC 100

Nikkei skids 2.3%

Japan's benchmark index dropped below 14,000 points for the first time since October due to a stronger yen as the currency rose to a three-week high against the greenback at 101.3.

"Japan has been hit from pillar to post this week and a 7 percent drop on the week is the sort of moves you'd expect in a frontier market. The failure of the BoJ to hint at easing this week has caught everyone long on the Nikkei and like the Fed funds, we've seen a huge re-positioning exercise," said Chris Weston, chief market strategist at IG.

Watch: Challenging times ahead for Nikkei: StanChart

Vote to see results
Total Votes:

Not a Scientific Survey. Results may not total 100% due to rounding.

In the tech and internet space, Softbank crumbled 4 percent, Rakuten eased over 2 percent and Panasonic lost 1.5 percent.

Index heavyweight Fast Retailing tanked 8 percent after lowering its annual full-year profit forecast, citing higher costs and weak demand.

Shanghai Composite 0.2% lower

Mainland shares declined after closing at their highest level in nearly two months on Thursday following comments from the vice governor of the People's Bank of China. Speaking in the U.S., he said that officials should be careful in implementing stimulus measures since they are less efficient than natural market forces in boosting growth.

His comments come one day after Premier Li Keqiang said Beijing won't take any short-term easing measures to combat economic volatility.

Read MoreWhy China's soy importer defaults aren't a big worry

"With demand condition sluggish and inflation not a threat for the foreseeable future, the central bank is likely to maintain a relatively accommodative monetary policy stance to support growth," wrote HSBC analysts in a research note.

Among the most actively traded stocks, cement maker Anhui Conch fell 3.5 percent while brokerages extended the previous day's losses with Citic Securities down 0.4 percent.

ASX down 1%

Australia's benchmark S&P ASX 200 retreated after notching new five-and-a half-year highs in the previous two sessions. Still, the index managed to eke out a modest 0.1 percent rise for the week, its fourth straight week of gains.

Meanwhile, the Australian dollar also fell after hitting a five-month high of $0.9439 on Thursday.

Coca-Cola Amatil slumped 14.5 percent after warning of a 15 percent drop in in earnings during the six months to June 30.

Echo Entertainment rallied 12 percent after the company said stronger gaming revenue boosted third-quarter earnings. Separately, the firm named Matt Bekier as its new chief executive.

A category 5 tropical cyclone is expected to hit the country's north coast later on Friday.

Read MoreEmerging markets carry trade? Well, it's back

Kospi falls 0.5%

South Korean shares pulled back after spiking to a 2014 high in the previous session while the won posted its biggest weekly percentage gain in more than two years against the dollar.

Internet search engine operator Naver lost over 3 percent, tracking declines in global tech shares

Samsung Electronics fell 1 percent as the fifth version of its Galaxy S smartphone was released on Friday.

Read MoreCan Samsung's Galaxy S5 take on the next iPhone?

India 0.4% lower

Indian shares were dragged down by weakness amid banks after a central bank panel recommended a raft of new measures that could potentially impact profitability.