Asia markets stumbled on the final trading day of the week, as a stronger dollar weighed on commodity prices, while Japan's benchmark government bond yield hit a record low ahead of next week's closely watched Bank of Japan meeting.
In Australia, the ASX 200 closed down 49.33 points, or 0.92 percent, at 5,312.60, led by 1 percent or more declines in the financials, energy and materials sub-indexes as banks and resources producers came under pressure.
Analysts said the weakness was likely due to the hit that commodity prices took overnight as a result of the stronger dollar. Most commodity prices are denominated in dollars, while Australia's big banks have exposure to the resources sector.
Japan's Nikkei 225 closed down 67.05 points, or 0.4 percent, at 16,601.36, as the yen maintained relative strength against the dollar.
Meanwhile, the 10-year Japanese government bond (JGB) yield fell to negative 0.147, after dropping as low as negative 0.15 earlier in the session. Bond yields move inversely to prices.
Many analysts expect that after the Bank of Japan's policy meeting ends next week on June 16, the central bank will likely announce further easing measures, which could include more purchases of JGBs. That could be spurring JGB buying from market players hoping to profit by reselling bonds to the central bank later.
Japan bank shares were also mostly lower, potentially as they are required to hold JGBs and the low yields can hurt their profits. Additionally, there is a possibility that the Bank of Japan could send interest rates deeper into negative territory, which would hurt banks' profit margins.
Across the Korean Strait, the Kospi fell 6.54 points, or 0.32 percent, to 2,017.63. In Hong Kong, the market returned to trade after being shut on Thursday, with the Hang Seng index dropping 1.07 percent.