Most Asian Markets Finish Lower

By Jeremiah Marquez

HONG KONG -- Most Asian markets dropped Friday as investors braced for news about the "stress tests" on major U.S. banks, while weak company results undercut hopes for an economic recovery.

Volumes were thin, suggesting investors are hesitant to place large bets one way or the other without clearer signs about the prospects for the economy and company results. Crude oil prices were steady, while the dollar slid almost 1% against the yen and the euro.

As in the U.S., company reports 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. Top brokerage Nomura(NMR Quote) suffered one of the largest annual losses in Japanese corporate history

Investors also were treading cautiously ahead of news about Washington's stress tests, which will determine whether the country's biggest banks have enough capital to withstand severe loan losses during the recession. The Federal Reserve is expected to explain its methodology for the tests on Friday and release results on May 4.

After a six-week rally, trading in many markets has turned choppy in recent days as investors swing between hope and skepticism about the economic outlook.

Most markets seesawed before heading lower in the afternoon.

Europe fared better in early trading, with major benchmarks in Britain, France and Germany up more than 1% each.

But with U.S. stock futures mixed, Wall Street was poised for a lackluster open on Friday.