HONG KONG – Most Asian markets dropped Friday as investors braced for news about the "stress tests" on major U.S. banks while hopes for an economic recovery remain bogged in uncertainty.
Volumes were thin, suggesting investors are hesitant to place major bets one way or the other without clearer signs about the prospects for the economy and company results. Crude oil prices and the dollar weakened.
As in the U.S., earnings in Asia sent mixed signals.
South Korea's Samsung Electronics reported a massive drop in profit that, while better than forecast, still underlined the toll slumping demand is having on the region's major companies. But results from other Asian firms, including insurance giant China Life, were more upbeat.
Investors were also treading cautiously ahead of news about Washington's "stress tests," which will determine whether banks have enough capital to survive severe loan losses.The Federal Reserve is expected to explain its methodology for the tests on Friday and release results on May 4.
"The markets don't have a clear picture right now," said Castor Pang, an analyst at Sun Hung Kai Financial in Hong Kong. "Investors are waiting on announcements and other information to give them more direction."
Most markets seesawed before trading lower by the afternoon.
Japan's Nikkei 225 stock average lost 113.80, or 1.3 percent, to 8,733.21, and Hong Kong's Hang Seng shed 66.14 points, or 0.4 percent, to 15,148.3.
South Korea's Kospi was off 1.5 percent at 1,344.48. The Korean economy, Asia's fourth largest, narrowly avoided slipping into recession in the first quarter as government pump priming offset a slump in exports but officials still predict a contraction for the full year.
Markets in Australia, China and Singapore also fell.
Traders looking to the U.S. found little direction after Wall Street finished another back-and-forth session with modest gains.
The Dow finished up 70.49, or 0.9 percent, to 7,957.06, making up most of Wednesday's loss of 83 points. The Standard & Poor's 500 index rose 8.37, or 1 percent, to 851.92.
But Wall Street was poised to head lower again as U.S. futures declined. Dow futures fell 58 points, or 0.7 percent, to 7,857 and S&P 500 futures slipped 6.4, or 0.8 percent, to 842.30.
In oil, benchmark crude for June delivery fell 47 cents to $49.15. The contract rose Thursday 77 cents to settle at $49.62.
The dollar slid to 97.06 yen from 97.85 yen. The euro gained to $1.3154 from $1.3128.
