The euro slipped further as investors became more risk-averse, while the yuan sank against the dollar on the first trading day sinceBeijingwidened the trading band for the Chinese currency.
Tokyofell 1.45 percent by the break,Hong Kongwas 0.58 percent lower,Sydneyshed 0.46 percent,Seoulslipped 0.93 percent andShanghaigave up 0.24 percent.
Regional markets followed losses on Wall Street and inEuropeFriday after data showed Spanish banks borrowed a record 227.6 billion euros in emergency cheap loans from the European Central Bank in March.
The figures show the weak confidence in the country's financial sector, with commercial banks turning to the ECB because they are struggling to borrow on the interbank market.
SpainandItalyhave come under scrutiny in recent weeks amid fears they could be the next economies to succumb to the same fate asGreece,IrelandandPortugaland need a bailout.
The yield on Spanish 10-year bonds jumped to 5.956 percent on Friday from 5.802 percent on Thursday, while the yield on Italian 10-year bonds rose to 5.513 percent from 5.394 percent.
On Wall Street the Dow dived 1.05 percent, the S&P 500 shed 1.25 percent and the tech-rich Nasdaq fell 1.45 percent.
And in Europe London's FTSE 100 shed 1.03 percent, the Frankfurt DAX dropped 2.36 percent andParis's CAC 40 fell 2.47 percent.Milan's FTSE Mib index dived 3.43 percent andMadridshed 3.58 percent.
Optimism over theUSeconomy -- which was driven by several months of strong jobs growth -- has waned in recent weeks and a bigger-than-expected drop in theUniversityofMichigan's consumer sentiment index added to anxieties Friday.
Figures also showed the number of people claiming unemployment benefit rose for a second straight week.
InShanghaithe yuan fell against the US dollar, in line with global dollar strength caused by dealers seeking safer assets.
At 0250 GMT, the dollar bought 6.3145 yuan, up from 6.3030 late Friday. The greenback hit an intraday high of 6.3250 earlier.
The fall came after the People's Bank of China said it would allow the yuan to move one percent either side of a state-set parity rate, up from 0.5 percent.
Saturday's announcement is a major step towards adopting market-oriented reforms and comes after leaders have faced pressure fromChina's trade partners to let the unit move more freely.
Beijinghas been accused of keeping the currency artificially low to boost its crucial export sector.
"There appears to be increasing evidence that reform-minded leaders are now in the ascendancy" inChina, said Sydney-based Ric Spooner, chief market analyst at CMC Markets in a note.
"The move to allow greater volatility in the currency, following the recent relaxation of restrictions on capital flows fits this scenario," he said, according to Dow Jones Newswires.
InTokyoforex trade the euro bought $1.3023 and 105.35 yen compared with $1.3078 and 105.83 yen inNew Yorklate Friday. The single currency is well down from $1.3167 and 106.70 yen inAsiaon Friday.
The dollar was at 80.90 yen against 80.91 yen inNew York.
On oil marketsNew York's main contract, West Texas Intermediate crude for delivery in May, was down 61 cents to $102.22 per barrel while Brent North Sea crude for June shed $1.13 to $120.08 in morning trade.
Gold was at $1,650.60 an ounce at 0335 GMT, compared with $1,674.15 late Friday.