Asian stock markets sagged on Friday under the weight of higher global crude prices and bond yields, and caution regarding tech-sector valuations.

Hong Kong, Shanghai and Tokyo finished in the red, as did most other regional exchanges.

Brent crude oil futures traded near $104 a barrel during Asian market hours.

In Japan, the Nikkei 225 opened lower on Wall Street cues and could not recover, closing down 1.9%.

The benchmark Nikkei 225 fell 1,259.61 to 64,011.34, as losing issues outnumbered gainers 127 to 95.

Leading the upside was social media and internet services provider LY, gaining 3.4%, while chemical company Resonac declined 10.7%.

In economic news, Japan producer prices rose 7.6% on the year in August, pushed by energy inputs, reported the Bank of Japan.

Japan's Business Survey Index in Q3 for large manufacturers rose by 7.6%, after a 1.8% decline in Q2, reported the Cabinet Office.

Yields on 10-year Japanese government bonds traded near 3% during market hours, testing 30-year highs.

In Hong Kong, the Hang Seng Index opened lower and finished off 0.6%, as property issues lagged.

The broad gauge Hang Seng fell 148.84 to 24,805.63, as losing issues outnumbered gainers 70 to 24. The Hang Seng TECH Index lost 0.2% on the day, while the Mainland Properties Index fell 1.9%.

Leading the upside was shipping line Orient Overseas International, gaining 2.3%, while mining enterprise CMOC declined 7.7%.

On the mainland, the Shanghai Composite fell 1.2% to 3,888.11.

On the other regional exchanges, the S. Korean KOSPI fell 1.8%; the Taiwan TWSE declined 1.6%; the Australian ASX 200 declined 0.9%; the Singapore Straits Times Index rose 0.1%, and the Thai Set declined 0.6%. In late trading in Mumbai, the Sensex was down 0.2%.

The MSCI All Country Asia Pacific Index fell 1.2% on the day.