05:52 AM EST, 01/10/2025 (MT Newswires) -- Asian stock markets generally fell back on Friday on the outlook for higher global interest rates, and possibly less accommodation than previously expected in 2025 from central banks in Beijing, Tokyo and Washington.

Exchanges in Hong Kong, Shanghai and Tokyo finished in the red, as did most other regional bourses.

In Japan, the Nikkei 225 opened lower and finished off 1% on interest rate outlooks and after Fast Retailing reported sluggish sales in mainland China, weighing on other retail stocks as well.

The benchmark Nikkei 225 fell 414.69 to 39,190.40, as losing issues outnumbered gainers 183 to 41.

Leading the upside was semiconductor-test equipment maker Advantest, up 5.1%, while Mitsui Mining & Smelting declined 6.8%.

In economic news, average household spending in Japan in November rose 3% on year in nominal terms, but fell 0.4% after adjusting for inflation, reported the Statistics Bureau.

Average monthly income per Japan household in November increased 4.1% in nominal terms, and inched up 0.7% in real terms from the previous year, said the government agency.

In Hong Kong, the Hang Seng Index opened evenly but lost ground in trading, finishing off 0.9% after Beijing's People's Bank of China announced it has suspended purchases of China sovereign bonds, triggering a rise in yields and speculation the central bank is moving to defend the exchange rate of the yuan.

The broad gauge Hang Seng fell 176.60 to 19,064.29, as losing issues outnumbered gainers 67 to 14. The Hang Seng TECH Index lost 1.2% on the day, while the Mainland Properties Index fell 1%.

Leading the upside was Zijin Mining, gaining 3.1%, while JD Health International declined 5.1%.

On the mainland, the Shanghai Composite fell 1.3% to 3,168.52.

On the other regional exchanges, the S. Korean KOSPI fell 0.2%; the Taiwan TWSE declined 0.3%; the Australian ASX 200 declined 0.4%; the Singapore Straits Times Index fell 1.4%, while the Thai Set inclined 0.4%. In late trading in Mumbai, the Sensex was down 0.3%.