Slump comes after 3 percent S&P 500 drop on earnings worries
Asian investors are assessing increasingly attractive valuations against a backdrop of deepening US-China tensions
The outlook is no better in China, where the Morgan Stanley strategists now forecast the CSI 300 Index to fall into a bear market that will last for the next year
Headlines about N Korea's test have triggered a profit-taking opportunity since the Nikkei had risen sharply recently
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.5%, after earlier hitting its lowest level since Sept 19
Japan's Nikkei lost 0.2 per cent, while South Korea's KOSPI dropped 0.8 percent and Australia fell 1.4 per cent
Shanghai outperformed, rising over 1% as energy and raw material stocks jumped
China's CSI 300 was little changed, while Hong Kong's Hang Seng index climbed 0.6 per cent
With Donald Trump's criticism of Mexican migration and trade putting the US's southern neighbour at a disadvantage if he wins
MSCI's broadest index of Asia-Pacific shares outside Japan fell 1 per cent, touching its lowest since September 19
MSCI's broadest index of Asia-Pacific shares outside Japan slid 0.5 per cent in early trading. Japan's Nikkei gained 0.1 per cent
Australian market added 1 per cent, while Japan's Nikkei put on 1.1 per cent
Brent crude eased back 45 cents to $46.90 a barrel, while US crude dipped 38 cents to $45.55 per barrel
Japan's Nikkei dipped 0.1 per cent, reflecting the yen's gains during Japan's market holiday on Thursday
S&P 500 Index gained 0.65 per cent, led by 1.9-per cent gain for the real estate sector
Worries also grew that the BoJ could cut interest rates more deeply into negative territory and adjust its massive asset buying
The soggy Asian start followed an uninspiring performance overnight on Wall Street where the Dow lost 0.2 per cent
Shanghai followed with a fall of 2 per cent, while Australian stocks sank 2.2 per cent
Dollar was nearly flat at 103.355 yen after coming down from a one-month high of 104.00 overnight
Given the weak ISM report, markets will look to Friday's non-farm payrolls to see if the Fed can risk raising rates this month or later this year