Mainland shares dropped below the 2,000 mark for the first time in six months over liquidity fears.
Trade in Asian equity markets was subdued on Friday after underwhelming U.S. earnings results pulled the plug on Wall Street's two-day rally.
Asian equities were mostly higher on Thursday but Japanese shares fell on a bout of profit-taking.
Japanese equities rose to a new six-year closing high on it's final trading day of the year after dollar-yen hit new multi-year highs.
Asian equity markets cheered another record close on Wall Street overnight, led by fresh six-year highs on Japan's benchmark index.
China's benchmark Shanghai Composite closed at its lowest levels since August 23 on Friday due to concerns of tight liquidity.
Asia stocks were mostly higher on Thursday after the Fed unveiled a cut in stimulus and vowed to keep rates low but China underperformed on liquidity fears.
Caution dominated trade in Asia on Monday after a preliminary reading of Chinese manufacturing activity fell to a three-month low in December.
One year into Prime Minister Abe's economic revival plan, he has yet to act on his pledge to stage the nation's comeback as a global economic dynamo.
Asian stocks followed Wall Street lower on Thursday on speculation that the Federal Reserve could pull back on its stimulus program soon.
Asian markets declined in tepid trade on Tuesday as investors digested a raft of Chinese economic reports and ignored a record close on Wall Street.
Asian stocks were mixed on Friday, as focus turned to the release of U.S. jobs data for clues on when the Fed could cut back its stimulus program.
Asian equity markets were mixed on Wednesday with Japan leading losses on profit-taking while Chinese shares rallied on news of financial reforms.
Japan's Nikkei rose to a new six-month peak on Tuesday thanks to supportive comments from the Bank of Japan.
Asian equity markets were mostly lower on Friday as investors engaged in profit-taking in the absence of a lead from Wall Street.
Asian equity markets followed their Wall Street counterparts higher on Thursday, led by a near 2 percent rally in Japanese shares.
Chinese shares outperformed on Wednesday while the rest of Asian shares fell on profit-taking and rising political tensions in the region.
Asian shares kicked off the week higher after a historic deal over Iran's nuclear program bolstered risk appetite.
Asian shares were mostly lower on Wednesday as a negative handover from Wall Street overshadowed remarks from Federal Reserve Chairman Ben Bernanke.
Japanese shares outperformed on Thursday as the yen weakened while the rest of Asian investors cheered dovish remarks from Fed Vice Chairman Janet Yellen.