Investing.com - Asian shares were mixed and volatile on Friday with Shanghai recovering from an early sharp dip and Sydney down on the day.
The Nikkei 225 rose 0.39%, while the S&P/ASX 200 dropped 2.20%.
The Shanghai Composite plunged briefly after the open and rebounded to trade up 1.74% at the break. A week of volatility on the bourse spooked global markets.
The yuan rose Friday after the People's Bank of China set a stronger fixing for the first time in nine trading sessions.
The yuan last traded 0.06% stronger at 6.5887 against the dollar compared with Thursday's close of 6.5929. The PBOC this morning set the yuan fixing at 6.5636 compared with Thursday's 6.5646.
Monetary policy makers in Japan said steps take in the December Bank of Japan board meeting were adjustments to policy, not easing, as downside risks were noted, but not seen as heightened, according to a summary of minutes released on Friday.
"While the supplementary measures decided this time are not additional monetary easing, they enable the bank to steadily continue with quantitative and qualitative monetary easing (QQE) through smoother asset purchases and, if judged necessary, to make appropriate adjustments in a timely manner," the summary said.
"Since downside risks to the outlook for economic activity and prices have not increased, the bank should maintain the current guideline for money market operations."
The BoJ will release the full minutes of the December meeting on Feb. 3.
In Australia, the AIG construction index came in at 46.8 for December, below the previous month's level of 50.7. A drop below 50 signals contraction.
Also in Australia retail sales for November rose 0.4% as expected, while Japan average cash earnings were flat, with a 0.7% gain seen, and overtime pay came in at 1.10%.
Overnight, U.S. stocks fell sharply by more than 2% on Thursday extending one of the worst starts to a year in a quarter-century, after the People's Bank of China roiled global markets with a surprising decision to adjust its daily fix against the yuan.
In overnight trading, China rattled global markets when its benchmark Shanghai Composite Index plummeted 7% within a half-hour of the start of trading, prompting its second circuit breaker in the span of four days. Earlier on Thursday, the PBOC set the midpoint of the yuan at 6.5646 against the dollar, 0.51% lower than the previous day's rate, representing the sharpest fall in the daily fixing since the currency's massive depreciation in mid-August.
The Dow Jones Industrial Average fell by as much as 420 points, briefly dropping 10% below its yearly-high from last May, before paring some of the losses late in the session to close at 16,514.10, down 392.41 or 2.32%. A weak session among tech stocks also pulled down the NASDAQ Composite index, which closed at 4,689.43, down 146.34 or 3.03%. The NASDAQ, which suffered its sixth straight loss, entered correction territory at one point on Thursday.
The S&P 500 Composite Index, meanwhile, lost 47.17 or 2.37% to 1,943.09, as all 10 sectors closed in the red. Stocks in the Technology, Basic Materials and Financials industries lagged, each falling by more than 2% on the session. A prolonged slump in oil prices also weighed on energy and drilling stocks, as crude futures tumbled below $34 a barrel to fresh 12-year lows. At one point on Thursday, the major indices hit a fresh three-month low.