"There has been plenty of consternation at the Obama plans for US banks, and the market impact has been to put the skids under risk trades and we see little stemming of that tide," Patrick Bennett, Asia currency and rates strategist at Societe Generale Hong Kong, said in a research note. Singapore's Straits Times Index ended down 1.1 percent, with DBS Group off 1.6 percent, United Overseas Bank down 1.5 percent and Oversea-Chinese Banking Corp 1.1 percent lower.
Genting Singapore declined 0.8 percent to S$1.22 after Citigroup initiated coverage of the stock with a "sell" rating and a target price of S$0.80. But shares in Singapore budget carrier Tiger Airways gained on their debut on Friday after the first Asian airline IPO in five years, with some investors betting the sector would rebound from a severe downturn. Tiger shares ended at S$1.58 versus the S$1.50 initial public offer price.
Malaysia's index fell to its lowest since January 18, down 0.6 percent, led by a 1.2 percent loss in financial firm CIMB Group and a 1 percent drop in Malayan Banking. But Malaysia fared best on the week, edging up 0.14 percent, with other Southeast Asian stock markets posting a loss. Indonesia's index, which earlier hit its lowest since January 7, ended down 1.06 percent on the day, led by a 4.1 percent drop in Astral International and a 5.1 percent fall in miner Indo Tambangraya Megah.
However, optimism over the domestic economy has pushed Jakarta up 3 percent this year, making it Southeast Asia's best performer and Asia's fifth best. Thailand's benchmark stock index ended 0.7 percent lower, recouping some of its early fall to the lowest since December 14. Domestic politics continued to hurt sentiment, dealers said.
"Red shirt" anti-government demonstrators are planning a symbolic rally next week near Bangkok's main airport, although they insist there will be no repeat of the crippling blockade a year ago by a rival protest movement. Banpu, Thailand's biggest coal miner, fell 2.7 percent, due to technical-led selling, while top energy firm PTT lost 0.9 percent in response to a weak oil price, with US crude futures hitting a four-week low on Friday.
Bucking the trend, KCE Electronics, a maker of printed-circuit boards, gained 6.2 percent on expectations of strong fourth-quarter results and solid 2010 earnings as it boosted efficiency to cut costs. The Philippines inched up 0.06 percent, with electricity distributor Manila Electric down 8.3 percent and Bank of the Philippine Islands dropping 6.3 percent. Vietnam's index inched down 0.2 percent, with Vietcombank down 1.2 percent and Petrovietnam 1.7 percent lower.