China A-share photolithography-equipment sector fell for a third straight session; Zhongchuan Special Gas and Jiezhong Technology tumbled over 8%, with Wavelength Optoelectronics, Dongfang Jiasheng, Maolai Optical and Xinlai Yingcai also down.

Singapore's Ministry of Finance expects global energy prices to remain elevated.

Demand at Thursday's 2-year JGB auction came in below the 12-month average as markets broadly expect the BOJ to tighten: bid-to-cover 3.63 versus 4.82 at the prior auction and a 12-month average of 3.81. The tail (average price minus lowest accepted price) widened to 0.007 from 0.005 last month, signalling weaker investor interest. Short-term yields have risen amid higher oil and fuel-inflation worries tied to Middle East tensions; the 2-year yield is 1.47%, near this month's 1.52% high. The moves add pressure on the BOJ to raise rates.