Ahead of the start of the Communist Party's fourth plenary session on Monday and the release of retail sales and industrial production data, China's indexes concluded the week with a downward trend.
China's deflation trend persisted in September as weak consumer demand collided with overcapacity and excessive competition in key manufacturing sectors.
Traders in Tokyo unwound the so-called "Takaichi trade," and the yen erased some of its recent losses as the LDP leader's bid for Japan's premiership faces rising hurdles.
China's exports rebounded to a seven-month high, and the trade surplus advanced as goods shipments rose in double digits to the ASEAN region, the European Union, Latin America, and Africa.
The producer price index rose 2.6% annually in September, matching the wholesale inflation rate in the previous month. The Japanese yen weakened to an 8-month low.
Stretched valuations compounded worries about an economic slowdown, causing stock market indexes in China and Hong Kong to close down. Two new companies listed their shares in Hong Kong.
Japan's indexes scaled to new record highs, and Softbank Group soared after the company announced a deal to acquire the robotics division of the Swiss engineering firm ABB.
Retail and catering sales rose weaker than expected during the Golden Week holiday, dampening the mood in stock trading. HSBC proposed to take Hang Seng Bank private.
Japan's nominal wages in August rose for the 44th consecutive month, and real wages declined for the eighth consecutive month, as price increases outpaced inflation.
Hong Kong stocks traded down, driven by a decline in artificial intelligence-linked stocks. Financial markets in mainland China are scheduled to reopen on Thursday following a weeklong public holiday.
Japan's market indexes soared on the hopes that the newly elected LDP leader's minority government could provide additional stimulus and support the demand-driven inflation. The Japanese yen plunged 2%.
