The Nikkei share average dropped 0.7 percent to 16,758.67, the lowest closing level since March 18.Japan's benchmark index rose 4.6 percent for the month, while it tumbled about 12 percent for the fourth quarter through Thursday.
Hong Kong's benchmark share index retreated from near three-month highs on Thursday as some investors took profits from a jump in the previous session as fears of a near-term U.S. interest rate hike receded.
The Hang Seng index ended down 0.1 percent at 20,776.70 points, while the China Enterprises Index gained 0.3 percent to 9,003.25.
For the month, the Hang Seng gained 8.7 percent, but was still down 5.2 percent in the first quarter after a dismal start to the year.
China stocks extended gains on Thursday after the previous session's 2 percent jump, as markets took comfort in the likely prospect that U.S. interest rates will rise at a slower pace.
Federal Reserve Chair Janet Yellen's remarks earlier in the week that the United States should proceed cautiously as it looks to raise rates continued to prop up market sentiment.
But reflecting lingering concerns, a Reuters poll showed that Chinese fund managers slightly reduced their suggested equity exposure for the next three months.
Both the CSI300 index and the Shanghai Composite Index rose 0.1 percent, to 3,218.09 points and3,003.92 points, respectively. For the month of March, both the CSI300 and SSEC indexes were up11.8 percent.
Reference: Reuters