Asia markets stumbled on Friday, the final trading day of the quarter, after concerns over Deutsche Bank undermined investor sentiment.
"A combination of financial sector risk in Europe, geopolitical concerns and Federal Reserve Board policy debate have injected a degree of apprehension into markets," said Stephen Innes, a senior trader at OANDA.
Meanwhile, trading in Kuala Lumpur was temporarily halted, after the stock exchange's building management received a bomb threat at 12:01 p.m. HK/SIN time. Trading was resumed in the afternoon at 2.30 p.m., and by 3:41 p.m., the KLCI was down 0.63 percent.
In Australia, the ASX 200 ended down 35.33 points, or 0.65 percent, at 5,435.92, with most sectors finishing lower. The heavily-weighted financial sector slipped 1.04 percent as major Australian banks sold off, likely due to concerns over the impact of the German lender on the global banking sector.
Across the Korean Strait, the Kospi was lower by 25.09 points, or 1.21 percent, at 2,043.63.
In Hong Kong, the Hang Seng index fell 1.82 percent by afternoon trade. Mainland Chinese shares bucked the generally downward trend across the region to close higher; the Shanghai composite added 7 points, or 0.23 percent, to 3,005.50, while the Shenzhen composite gained 9.68 points, or 0.49 percent, to 1,995. 60.
Major indexes in Thailand, Singapore and the Philippines also traded lower.
Indian shares were slightly lower, with the Nifty 50 index down 0.03 percent, after falling 1.76 percent on Thursday. The Sensex, which dropped 1.64 percent in the previous session, traded down 0.18 percent on Friday afternoon.
Sentiment in South Asia's largest country took a dent on Thursday, when India announced its army conducted "surgical strikes" against terrorists along the Line of Control, which runs through the disputed territory of Kashmir. Commentators, however, pointed out on Friday that long-term sentiment would unlikely be dented by the action unless the tensions with Pakistan escalated further.