Asian markets sank on Friday, following losses on Wall Street, after better-than-expected US growth data fed speculation the Federal Reserve will roll back its stimulus programme soon.
The euro fell further after a sell-off on Thursday in response to the European Central Bank's surprise decision to cut eurozone interest rates, although investors seemed unmoved by news of a ratings downgrade for France by Standard & Poor's.
Tokyo fell 1.00 percent, or 141.64 points, to 14,086.80, Seoul closed 0.96 percent lower, giving up 19.17 points to 1,984.87, while Sydney slipped 0.39 percent, or 21.3 points, to 5,400.7.
A better-than-expected export report for China was unable to prevent a sell-off in Chinese stocks. Shanghai ended 1.09 percent, or 23.27 points, down at 2,106.13 while Hong Kong fell 0.60 percent, or 136.64 points, to close at 22,744.39.
On Thursday the Commerce Department said the US economy grew at an annual rate of 2.8 percent in July-September, well above the 1.9 percent projected by analysts and representing the strongest pace of growth in a year.
And while economists said the headline number masked weakness in consumer spending and other areas, David Levy, portfolio manager at Kenjol Capital Management, said nevertheless "the market is looking at it as a strong number".
Despite the upbeat figures indicating the US recovery is gaining traction, investors are moving out of assets as they expect it will bring forward a winding down of the Fed's bond-buying scheme that has provided them with cheap money.
The monetary easing unveiled in September 2012 has been credited with fuelling a global stocks rally.
The central bank has said it will start to cut down its $85 billion a month programme when the economy shows it is strong enough and unemployment has fallen enough.
Thursday's news brings Friday non-farm payrolls even more sharply into focus.
While many market-watchers had expected the Fed to begin tapering early next year, Levy said many will now be wondering if the growth data "pushes up the timetable".
Wall Street shares fell despite a blockbuster 73 percent surge for Twitter on its markets debut. The Dow lost 0.97 percent and the S&P 500 gave up 1.32 percent -- both indexes have been sitting at record highs in the past week. The Nasdaq sank 1.90 percent.
In New York forex trade the dollar also tumbled against the yen after the growth figures, ending at 98.02 yen, well down from 98.60 yen in Asia earlier in the day. On Friday in Tokyo the greenback edged up slightly to 98.13 yen.
ECB surprises with rate cut
The euro's woes continued after the ECB slashed its key interest rate by a quarter point to 0.25 percent as it seeks to fend off falling eurozone inflation, which hit a four-year low in October.
The announcement came as a surprise to financial markets, which had mostly been betting on a cut at the end of the year or early 2014.
Adding to investor worries was a warning from ECB president Mario Draghi that the 17 countries that share the euro "may experience a prolonged period of low inflation", which could have a severe impact on debt-addled economies.
The euro was quoted at $1.3412 in Tokyo, compared with $1.3414 in New York, while it also fetched 131.65 yen against 131.50 yen. It is well down from the $1.3518 and 133.36 yen in Tokyo earlier on Thursday.
The single currency saw a brief decline after S&P cut France's credit rating by a notch, blaming weak government reforms and low economic growth.
However, a senior dealer at a major bank in Tokyo told Dow Jones Newswires: "It's not like the S&P action wasn't a surprise, but it's hard to make aggressive moves ahead of tonight's US jobs data."
The US news also overshadowed Chinese data showing exports expanded by a greater-than-expected 5.6 percent year-on-year in October, while imports also rose an above-forecast 7.6 percent.
However while the figures have given rise to hopes the world's number two economy has emerged from a slowdown, analysts pointed to possible problems stemming from weaker overseas demand in the next few months.
In oil markets New York's main contract, West Texas Intermediate for December delivery, was up 26 cents at $94.46 in afternoon trade, while Brent North Sea crude for December eased 72 cents to $103.58.
Gold was at $1,308.89 per ounce at 1100 GMT compared with $1,315.80 on Thursday.
In other markets:
-- Taipei fell 0.65 percent, or 54.12 points to 8,229.59.
Taiwan Semiconductor Manufacturing Co. fell 0.93 percent to Tw$106.0 while Hon Hai was 0.81 percent lower at Tw$73.5.
-- Wellington rose 0.58 percent, or 38.67 points, to 4,951.36.
Fletcher Building was up 1.16 percent at NZ$9.63, Air New Zealand added 0.61 percent to NZ$1.64 and Trade Me was down 0.23 percent at NZ$4.38.
-- Manila fell 1.26 percent, or 81.31 points, to 6,355.18.
SM Investments tumbled 5.03 percent to 756.00 pesos, Manila Electric Co. gave up 4.97 percent to 298.20 pesos, while Metropolitan Bank was 2.67 percent lower at 83.70 pesos.
-- Bangkok fell 1.42 percent or 20.20 points to close at 1,405.03.
Banpu was unchanged at 27.50 baht, but PTT Plc fell 0.32 percent or 1.00 baht to 310.00 baht.
-- Kuala Lumpur shed 0.12 percent, or 2.13 points, to close at 1,804.48.
Petronas Chemicals ended 3.8 percent lower at 6.83 ringgit and Petronas Dagangan was down 1.7 percent at 23.88.
-- Singapore closed down 0.78 percent, or 24.85 points, to 3,177.25.
Agribusiness company Wilmar International fell 2.03 percent to Sg$3.38, while Singapore Telecom was down 0.26 percent to Sg$3.80.
-- Jakarta ended down 0.21 percent, or 9.39 points, at 4,476.72.
Mobile phone provider Indosat dropped 5.06 percent to 3,750 rupiah, while cigarette maker Gudang Garam gained 2.15 percent to 35,600 rupiah.
-- Mumbai fell 0.75 percent or 156.62 points to 20,666.15.
SpiceJet fell 4.77 percent lower to 18.95 rupees.