Stocks, oil, dollar and TSMC in focus
The Nikkei 225 slipped 0.13 percent, or 28.94 points, to end at 22,162.24 as semiconductor companies declined while financials and utilities mostly rose.
South Korea's benchmark Kospi index edged down by 0.39 percent to 2,476.33 and Australia's S&P/ASX 200 finished the day lower by 0.21 percent at 5,868.80.
Greater China markets also recorded declines, with Hong Kong's Hang Seng Index shedding 0.67 percent by 3:00 p.m. HK/SIN.
|ASX 200||S&P/ASX 200||5868.80||-12.20||-0.21%|
|CNBC 100||CNBC 100 ASIA IDX||8614.80||-100.39||-1.15%|
Tech takes a hit
Morgan Stanley attributed TSMC's weak guidance to order reductions from Apple iPhone processors. On Friday, TSMC shares tumbled 6.34 percent, dragging Taiwan's Taiex lower by 1.75 percent.
In Japan, Tokyo Electron and Advantest declined 2.05 percent and 2.21 percent, respectively. Meanwhile, South Korea's Samsung Electronic slid 2.2 percent and chipmaker SK Hynix tumbled 3.98 percent.
U.S. stocks closed moderately lower on Thursday, with the technology sector coming under pressure following TSMC's weak guidance. Apple, for which TSMC is a supplier, fell 2.8 percent amid declines in other U.S. semiconductor stocks.
Investors also focused on higher U.S. bond yields as the yield on the 10-year U.S. Treasury note stayedabove the 2.9 percent level. The two-year yield traded near its highest levels in almost a decade.
"There's somewhat of a short attention span, with markets looking past [trade tensions], with the beige book and some of the data coming out just showing the U.S. to be relatively healthy. That might be impacting the yield curve more so than simmering trade tensions," Alex Wolf, senior emerging markets economist at Aberdeen Standard Investments, told CNBC's "Squawk Box."
In currencies, the dollar firmed as U.S. bond yields rose. The dollar index, which tracks the greenback against a basket of six currencies, stood at 89.985. Against the yen, the dollar strengthened to trade at 107.51 at 2:41 p.m. HK/SIN.
The British pound was on the back foot after Bank of England Governor Mark Carney downplayed the possibility of a May interest rate hike. The currency traded around two-week lows at $1.4057.
Oil prices were steady on Friday. U.S. West Texas Intermediate crude was off by 0.19 percent at $68.16 per barrel, after touching a more than three-year high in the last session. Brent crude futures were little changed at $73.77 per barrel.
Among individual movers, shares of Australia's AMP closed down 0.46 percent. It said CEO Craig Meller would step down immediately following the company's testimony at an Australian inquiry. AMP apologized for "misconduct and failures in regulator disclosures."
Elsewhere, China Huarong Asset Management tumbled 10.69 percent by 2:55 p.m. HK/SIN after the company said its chairman, currently being investigated by the state, had stepped down from its board.
Also of note, shares of Takeda Pharmaceutical dropped 4.67 percent after news on Thursday that U.K. drugmaker Shire had declined the Japanese company's acquisition offer.
— CNBC's Tae Kim contributed to this report.
Europe ends slightly lower amid fresh earnings; Ericsson jumps 17.5%
Major bourses showed a mixed picture by the close. The U.K.'s FTSE 100 closed up 0.54 percent, while France's CAC 40 rose 0.39 percent. Germany's DAX, however, closed down 0.21 percent.
On the week, the STOXX 600 provisionally closed up 0.7 percent. This positive overall weekly result marks the fourth straight week of gains as global markets recovered from a turbulent start to the year.
Heightened concerns over the prospect of a trade war, faster rate hikes in the U.S. and a regulatory crackdown on big tech companies had pushed the STOXX to 14-month lows last month.
Ericsson speeds ahead
Shortly behind Ericsson's lead was Telia, which closed up 8.6 percent, after the Nordics telecoms group announced a share buyback plan as first-quarter earnings beat expectations. Telecoms as a whole was the region's top performing sector, jumping 1.04 percent.
Reckitt Benckiser shares pared some of its losses, closing down 2.78 percent after its sales growth missed estimates for its first quarter.
Meantime, ASM International slipped lower, down almost 8.5 percent, after reporting earnings late Thursday. The firm saw net sales for 2018's first quarter come in at 159 million euros ($195.7 million) — a decrease of 12 percent, compared to the previous quarter.
Elsewhere, U.K. regulators have concluded their investigations into Barclays and its CEO Jes Staley. While the FCA and PRA won't take enforcement action against the bank, it is now required to report to the regulators on aspects of their whistle-blowing programs. Staley will also be fined for attempting to unmask a whistleblower. Shares of the bank finished modestly higher.
Oil prices return to the limelight
In Asia, equities finished the session lower after the world's largest chipmaker delivered a disappointing forecast late Thursday. Taiwan Semiconductor Manufacturing slashed its revenue target to the lower end of forecast, citing weaker-than-expected demand for smartphones.
Elsewhere, oil prices hovered close to multi-year highs after climbing to their highest level since late 2014 on Thursday. International benchmark Brent crude came off its lows by Europe's close, trading at $73.44. Prices remain supported by a drawdown in global supply as OPEC kingpin Saudi Arabia appeared poised to increase its export revenue.
Dow tumbles about 200 points as Apple drags tech lower
The Dow Jones industrial average fell 201.95 points, or 0.8 percent, to 24,462.94 as Apple as the worst-performing stock in the index. The Nasdaq composite declined 1.3 percent to close at 7,146.13.
The S&P 500 pulled back 0.8 percent to 2,670.14, with tech sliding 1.5 percent. The index also broke below its 50-day moving average, a key technical indicator.
"The market is still very susceptible to technicals at this point," said Jeff Kilburg, CEO of KKM Financial. Breaking below the 50-day moving average caused a "technical washout in the market," he said. The Nasdaq and Dow also closed below their 50-day moving averages.
Apple shares fell 4.1 percent after Morgan Stanley said the company's iPhone sales for the June quarter will disappoint Wall Street. The stock had already fallen more than 1 percent for the week heading into Friday's session.
About 16 percent of the S&P 500 has released its quarterly results, with 81.5 percent of those companies posting better-than-expected earnings, according to FactSet. Next week will be the busiest week of the season, with more than a third of the S&P 500 set to report. Some of the companies scheduled to release their results include tech giants Alphabet, Intel and Microsoft.
"It remains to be seen whether there is enough enthusiasm generated by earnings to break the market higher," said Michael Shaoul, chairman and CEO of Marketfield Asset Management. "We have not seen many technology companies report earnings thus far but strong beats have received applause while IBM … remains in its multi-year penalty box." IBM reported stronger-than-expected earnings and revenue earlier this but its stock dropped sharply on disappointing guidance.
Wall Street also kept an eye on interest rates as the 10-year Treasury yield added to strong gains for the week on Friday. The yield reached 2.96 percent — its highest level since 2014 — while the two-year yield rose to its highest level in a decade.
Bank stocks rose on the back of higher rates Friday. The SPDR S&P Regional Banking ETF (KRE) and the Bank ETF (KBE) both rose more than 0.7 percent.
In economic news, Federal Reserve Governor Lael Brainard said further escalation of trade tensions could raise worries about the global economic recovery. Brainard added, however, the U.S. economy appears capable of handling tighter monetary policy.