MSCI's broadest index of Asia Pacific shares outside Japan eased 0.1 percent while the Nikkei average opened down 0.5 percent after hitting a four-week high on Thursday.
Slower demand in the world's second-largest oil consumer China weighed on oil prices, with Brent crude easing a touch to $111.08 a barrel and U.S. November crude slipping 0.1 percent to $84.12 a barrel.
World stocks as measured by MSCI eased 0.2 percent on Thursday after six days of gains, while U.S. shares fell from three-week highs on weak China trade data which underscored worries about the strength of global economy and the impact from the European debt crisis.
European financial turmoil reduced demand for securities underwriting and acquisition advice, hitting earnings of JPMorgan Chase & Co. , the second largest U.S. lender the first major bank to post third quarter results.
Shares of JPMorgan slid 4.8 percent, with an index of U.S. bank shares falling 2.9 percent and an European lenders' index losing 3.7 percent.
Europe is showing signs of accelerating efforts to shore up the euro zone banking sector and limit the damage from the region's spreading sovereign debt crisis, but the cost it would have to pay could pose risks to the single currency and growth.
The European Central Bank said on Thursday that forcing private bondholders to accept losses on euro zone sovereign debt could damage the reputation of the euro, hurt the bloc's banks and encourage volatility on foreign exchange markets.
The ECB's warnings were directed at the broader concept of forcing investors to take losses on euro zone bonds, and not specifically referring to the current debate on increasing previously agreed plans for a 21 percent writedown for banks holding Greek debt.
But ECB policymakers said the euro zone could fall back into recession, noting in its monthly bulletin released on Thursday that downside risks relate especially to financial market turmoil.
Downgrades of sovereign ratings continued, with the latest from ratings agency Standard and Poor's which on Friday cut the long-term credit rating of Spain by one notch.
Sovereign debt woes have put European government bond yields under pressure, with the ECB having to step into the secondary market to buy after an Italian debt auction on Thursday to cap rising yields.
In Asian credit markets, which have reflected the strain of waning confidence in the financial system, spreads on the iTraxx Asia ex-Japan investment grade index widened again by about 8 points early on Friday, after narrowing sharply the day before by about 17 points.
The euro edged lower in early Asian trade on Friday after the downgrade on Spain's ratings, but it still remained on track for the biggest weekly rally since January.
As investors sought relative safety, prices of U.S. Treasury debt rose, with the benchmark 10-year note up 9/32 to yield 2.1798 percent late in New York on Thursday.
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