Asian markets mostly fell Friday as the prospect of a military confrontation between Ukraine and Russia knocked confidence and offset forecast-beating US growth data.
The rise in geopolitical uncertainty prompted investors to buy lower-risk assets such as the yen, despite disappointing economic figures out of Tokyo.
Tokyo slipped 0.23 percent, or 35.27 points, to finish at 15,424.59 and Seoul shed 0.35 percent, or 7.22 points, to 2,068.54 while in late trade Hong Kong was 0.23 percent lower.
However, Sydney was marginally higher, edging up 1.49 points at 5,625.9 and Shanghai added 0.97 percent, or 21.38 points, to 2,217.20.
After enjoying a rally over the past few weeks, investors have been spooked by claims that Russian forces were inside Ukraine helping support pro-Kremlin separatists who have been fighting against Kiev`s rule since April.
NATO said at least 1,000 Russian troops were on the ground in the country, fuelling worries of a war.
Moscow denies the accusations but US President Barack Obama said it was "plain for the world to see" that Russian forces were fighting in Ukraine. He and German Chancellor Angela Merkel warned the actions "cannot remain without consequences", raising the prospect of even more sanctions against Moscow.
The developments overshadowed news from the Commerce Department that the US economy expanded at a 4.2 percent annual rate in April-June, revising upward its previous 4.0 percent estimate.
However, on Wall Street the S&P 500, which ended above 2,000 for the first time this week, pulled back from Wednesday`s record close, shedding 0.17 percent. The Dow lost 0.25 percent and the Nasdaq dropped 0.26 percent.
Currency dealers shifted away from their recent positive positions, moving back into the yen, which is considered a safe option in times of uncertainty.
However, the dollar got a reprieve as Japanese importers bought it before month end, dealers said, while Russian President Vladimir Putin called on separatists in Ukraine to allow Ukrainian troops out of the rebel-held town of Novoazovsk.
The dollar fetched 103.79 yen in Tokyo trade, against 103.75 yen in New York but is still well off the seven-month high of 104.20 yen seen earlier in the week. The euro bought $1.3162 and 136.63 yen, compared with $1.3181 and 136.75 yen in New York.
The Japanese unit`s gains came despite official figures showing household spending sank more than expected in July while industrial production was stagnant.
The data come after a bigger-than-expected contraction in the economy in April-June as an April sales tax hike bites into the country`s recovery.
While inflation came in as forecast, analysts said the results will add pressure on the Bank of Japan to unveil fresh monetary easing measures to kickstart economic growth.
On oil markets US benchmark West Texas Intermediate for October delivery was up 27 cents at $94.82 while Brent crude for October advanced 33 cents to $102.79 in afternoon trade.
Gold traded at $1,289.81 an ounce at 0650 GMT, from $1,292.23 late Thursday.
In other markets:
-- Taipei eased 0.44 percent, or 42.10 points, to 9,436.27.
Smartphone maker HTC rose 1.48 percent to Tw$137.5 but Taiwan Semiconductor Manufacturing Co. lost 0.8 percent to Tw$124.0.
-- Wellington fell 0.27 percent, or 14.21 points, to 5,223.30.
Air New Zealand was down 0.90 percent at NZ$2.195 and Fletcher Building slipped 0.97 percent to NZ$9.20.
-- Mumbai was closed for a public holiday.
