Japan's benchmark Nikkei 225 stock average led decliners, dropping 171.61 points, or 1.5 percent, to 11,102.18. Hong Kong's Hang Seng index fell 1.5 percent, China decreased 1.1 percent, Indonesia slid 0.8 percent, Singapore was down 0.6 percent while South Korea and Malaysia skidded 0.5 percent.

Thailand's benchmark stock index fell 2.1 percent after being closed the previous three days for holidays. On Saturday, 21 people died in fighting among the Thai army and protesters demanding fresh elections.

Investors were weighing impressive first quarter gross domestic product results this week from China and Singapore against signs governments are beginning to tighten monetary policy in the face of quickening inflation and surging property prices.

China said Thursday it will raise the minimum downpayment on purchases of some residential property and free up more land for building to cool soaring housing costs.

India said Thursday its inflation rate stuck at 9.9 percent in March.

"If you were to write down all the positives and negatives right now for Asian markets, it would be fairly well balanced," said Peter Elston, a strategist with Aberdeen Asset Management in Singapore.

A U.S. Labor Department report that said initial claims for unemployment benefits rose unexpectedly for a second straight week raised doubts about the strength of the U.S. economic recovery and also weighed on stocks.