Stock markets in China extended their dramatic selloff on Friday, with the Shanghai Composite index losing as much as 7 percent intra-day, on the back of news that securities regulators are investigating suspected market manipulation.
Elsewhere in the region, downbeat sentiment prevailed ahead of a key referendum on Sunday that would determine Greece's future in the euro zone.
"In a nutshell, both the 'yes' and 'no' vote seem to bear significant risks for global markets. A 'yes' vote risks seeing Greece plunge into fresh political chaos... and means the country must go back to the negotiation table and try to knock something together again," IG's market strategist Stan Shamu wrote in a note.
"However, it's a lot worse on the other side as a 'no' vote will present a host of uncertainties that could really rattle markets. Either way, traders will need to buckle up for a tumultuous Monday," Shamu added.
Overnight, U.S. major indexes handed over a modestly negative lead after mixed jobs data dampened the U.S. economic outlook. The Dow Jones Industrial Average shed 0.16 percent, while the S&P 500 and the Nasdaq Composite finished nearly flat.
For the month of June, the number of new jobs in the U.S. totaled 223,000, according to Labor Department numbers released Thursday, slightly missing Reuters' expectations for an addition of 230,000 jobs.