Asian shares extended losses after North Korea conducted its fifth and most powerful nuclear test on Friday, heightening geopolitical tensions in the region at a time when investors are grappling with slowing global growth.
Stocks were already on the back foot when the North Korean news rattled markets, with uncertainty over the prospect of further easing from the European Central Bank pressuring global equities and bonds.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS dropped 0.5 percent after touching a 13-month high on Thursday. The decline shrank gains for the week to 2.5 percent.
Japan's Nikkei was flat in choppy trade on Friday as investors continued to look for clues to when U.S. interest rate will be increased and whehter the Bank of Japan will add to its aggressive monetary stimulus.
The Nikkei ended nearly flat at 16,965.76, and it was down 0.2 percent for the week.
China stocks fell on Friday after August inflation data provided few if any incentives for authorities to ease monetary policy, and that kept many investors on the sidelines.
The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 0.6 percent to 3,318.04 points. The Shanghai Composite Index also was down 0.6 percent at 3,078.85 points. For the week, the CSI300 index gained 0.1 percent while the SSEC edged up 0.4 percent.
Hong Kong stocks were lifted again on Friday by inflows from the mainland, helping the benchmark index have its best week in nearly two months.
The Hang Seng index rose 0.8 percent, to 24,099.70, while the China Enterprises Index gained 0.5 percent, to 10,057.97 points. For the week, the HSI rose 3.6 percent, the biggest weekly gain since July 11-15.
Yield-hungry mainland investors have stepped up buying Hong Kong stocks over the past two weeks through the Shanghai-Hong Kong Stock Connect scheme, seeking to front-run an investment link between Shenzhen and Hong Kong to be launched as soon as November.
Reference: Reuters
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