In Tokyo, the Nikkei average fell 1.37 percent, reversing opening gains as property firms fell after Sumitomo Realty & Development was hit by a brokerage downgrade and by concerns about the impact of higher borrowing costs on the sector.

Shares in Sony fell for the third straight session. It is delaying the release of its new PlayStation 3 videogame console by about half a year, until early November.

Sumitomo Realty fell 6.6 percent to 2,820 yen (HK$186.12), becoming the biggest percentage decliner on the Nikkei 225, after Mizuho Securities lowered its rating on the firm, citing recent rises in the share price. Other property firms fell, in part on concerns that higher borrowing costs may eventually crimp earnings.

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The Nikkei ended down 222.83 points at 16,096.21, its lowest finish in a week. The broader TOPIX index was down 1.30 percent at 1,645.06.

Electronics and entertainment conglomerate Sony declined 1.7 percent to 5,370 yen. POSCO supports Seoul South Korean shares rose slightly, as steelmaker POSCO hit a record high on brighter earnings prospects, but broader advances were capped amid worries about the impact of a stronger won on exporters' profits.

Shares were seen stuck in a limited range for the remainder of the month, with investors not expected to make big bets until they can gauge the impact of a strong won on results due out in April.

The benchmark Korea Composite Stock Price Index rose 0.15 percent to end at 1,335.98, after earlier rising as much as 0.99 percent. POSCO jumped 2.07 percent at 246,000 won (HK$1,968), after hitting an all-time high of 249,500 won. Profit-takers clip Taipei Taiwan stocks fell 0.21 percent as investors used Wall Street-fueled gains to pocket profits from tech shares, with cellphone maker BenQ slumping the daily 7 percent limit for a second day. The main TAIEX share index rose as much as 1.2 percent by midday before late-session selling kicked in. It ended down 13.72 points at 6,504.98.

BenQ, the market's most actively traded issue by volume, was limit-down for a second day at NT$27.25 (HK$6.52) after it posted wider-than- expected quarterly profits. Smaller rival Compal Communications finished flat. Singapore lackluster Singapore shares closed flat on reduced investor interest for blue chips after the end of the earnings season.

The Straits Times Index closed up 0.04 percent, at 2,498.93. Blue chip Singapore Press Holdings lost 1.3 percent to S$4.46 (HK$21.35) on concerns that Internet sites are a threat to its advertisement business.

Singapore-listed shares of Hong Kong-based Wheelock Properties rose 2.1 percent to S$1.44 on a positive outlook for the high-end property market. Sydney scales new peak Australian shares set a record closing peak as gains in copper and gold prices and signs of strong US economic activity spurred export-driven stocks such as mining giant BHP Billiton.

The benchmark Australian S&P/ ASX 200 Index rose 31.6 points, or 0.64 percent, to 4,977.9. BHP Billiton added 2.3 percent to A$24.46 (HK$140.28). Mumbai at record high Indian shares ended at a record high with Reliance group shares leading the rise among blue chips.

The 30-stock Sensitive Index, or Sensex, closed up 0.7 percent at a record 10,878.74 points.

Reliance group shares drove the market after Reliance Capital said that an equity fund of its mutual fund unit raised a record 57 billion rupees (HK$9.96 billion).

Reliance Industries jumped 3.6 percent to 768.50 rupees, while Reliance Energy added 1.1 percent to 651.15 rupees. DOW JONES NEWSWIRES, REUTERS