By V. Phani Kumar, MarketWatch

HONG KONG (MarketWatch) -- Most Asian markets declined Friday, paring the strong gains recorded earlier in the week, with mainland Chinese shares sliding ahead of a three-day weekend amid lingering economic worries.

Hong Kong equities climbed as a number of frontline companies reported strong profit growth. Several Japanese stocks also ended higher on the back of upbeat results and forecasts, although the broader market fell in choppy trade after the country's central bank refrained from announcing any fresh monetary easing measures.

The Shanghai Composite fell 1%, South Korea's Kospi dropped 0.4%, Australia's S&P/ASX 200 gave up 0.1% and Japan's Nikkei Stock Average fell 0.3%.

Hong Kong's Hang Seng Index climbed 0.7%, while Taiwan's Taiex ended flat.

"Asia has been all over the place today and while the open showed promise, as the day grew on sellers came into the market," said Chris Weston, chief markets strategist at IG Markets.

The Nikkei Average was the best performer of the week, rising 4.3%. Stock benchmarks in Sydney, Hong Kong, Seoul and Taipei also posted weekly gains. The Shanghai Composite was an exception, finishing the week with a 3% drop.

The weak performance came on caution ahead of the weekend and before U.S. economic growth data due later in the day. Dow Jones Industrial Average futures (DJM3) were down 20 points, or 0.1%, by late afternoon in Asia.

Earnings-driven moves

Earnings-related news dominated trading in several regional markets including Japan, mainland China, Hong Kong and South Korea.

"Global share markets are in a sweet spot at present, with traders using good earnings reports to push stocks up, whereas any weak economic data is viewed as keeping monetary policy looser for longer," said Perpetual head of investment market research Matthew Sherwood.

In Hong Kong, Bank of China Ltd. (BACHY) rose 1.4%, mobile-service provider China Unicom Hong Kong Ltd. (CHU) gained 2.6%, PetroChina Co. (PTR) added 2% and casino operator Wynn Macau Ltd. (WYNMY) climbed 0.6% after each reported earnings. (Read more on earnings from China Unicom, Bank of China, and PetroChina)

Shares of BYD Co. (BYDDY), the Chinese automobile and battery maker backed by billionaire Warren Buffett, soared 12.2% after its quarterly profits more than quadrupled.

In Shanghai, the mood was less upbeat amid lingering concerns about economic growth, and as investors remained cautious ahead of more blue-chip earnings reports due later in the day.

Shares of banking giants Industrial & Commercial Bank of China Ltd. (IDCBY), China Construction Bank Corp. (CICHY) and Agricultural Bank of China Ltd. (ACGBY) all dropped ahead of their quarterly reports.

Shanghai-traded shares of Bank of China lost 1%, and PetroChina eased 0.5%, untouched by gains recorded in their Hong Kong-listed stock.

Even so, some other major stocks outperformed following their earnings, with SAIC Motor Corp. climbing 0.1%, while Baoshan Iron & Steel Co. ended up 0.2%.

In Tokyo, Japan Tobacco Inc. (JAPAF) rose 2.7% after it reported a 10% drop in fiscal fourth-quarter net profit but forecast its earnings in the current financial year will rise to a record level.

Sony Corp. (SNE) gained 0.3% after the company doubled its profit estimate for the year ended March 31 on the back of a weaker yen, asset sales and an improvement in its life-insurance business.

Komatsu Ltd. (KMTUF) climbed 2.6%, but Mitsubishi Motors Corp. (MMTOY) slumped 6.5%, also driven by their respective earnings reports.

The pullback in Tokyo stocks came as the U.S. dollar (USDJPY)weakened after the Bank of Japan's policy announcement, moving further away from the psychological level of 100 per dollar. Some analysts said the focus is now on the government to pursue fiscal reforms.

"We expect the financial markets to keep a vigilant eye on whether or not the administration can come up with a structural reform program that lifts the growth potential of the Japanese economy over the longer run, even if it means some pain in the near term," Citigroup analysts led by Kiichi Murashima wrote to clients.

Referring to the latest earnings season, the analysts said firms were expected to revise their forecasts higher but advised investors not to be "spooked" by any conservative estimates.

Meanwhile, stocks in Seoul came under pressure as shares of heavyweight Samsung Electronics Co. (SSNLF) dropped 0.5% even as the giant electronics maker company reported a record quarterly profit that rose 42% from the year-ago period, boosted by strong smartphone sales.

Other movers

Australian stocks rose as investors returned from Thursday's holiday, with the resource sector doing particularly well on recent gains in commodity prices.

BHP Billiton Ltd. (BHP) added 2.8% and Rio Tinto Ltd. (RIO) climbed 2.1%, while Newcrest Mining Ltd. (NCMGY) rose 3.6% after gold futures scored their best gain since June in the U.S. overnight.

In Tokyo, several exporters fell on the yen's strength, with Nintendo Co. (NTDOY) slumping 7.2% and Canon Inc. (CAJ) losing 1% to extend their losses Thursday in the wake of disappointing results.

Banks also turned weak after their recent strong run. Mizuho Financial Group Inc. (MFG) gave up 0.5%, and Sumitomo Mitsui Financial Group Inc. (SMFJY) slipped 0.2%.

In other financial news in Tokyo, the Nikkei newspaper reported that billions of yen in client money may have gone missing at a U.S. financial services firm.

The anonymously sourced report said Japan's Securities and Exchange Surveillance Commission couldn't account for some client assets at MRI International Inc. in an inspection that began last month.

Shares of Nissan Motor Co. (NSANY) eased 0.4% in the downbeat market, despite a report in the Nikkei newspaper that the company and its French partner Renault SA (RNO.FR) plan to use common parts for production, in a move that is expected to slash development costs by about 30%.

Hong Kong-listed insurer AIA Group Ltd. (AAGIY) rose 1.3% after posting a strong 25% increase in new business in the first quarter.

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