Updated from 5:06 a.m. EDT

TOKYO ( TheStreet) -- Asian markets ended mostly lower Friday, with Tokyo falling 0.7%, while European shares were mixed after trading slightly down on news U.K. bank Lloyds ( LYG) was in talks with regulators about the possibility of reducing the amount of toxic assets covered by the U.K.'s Government Asset Protection Scheme.

Shares in Tokyo fell 73.26, or 0.7%, to 10,370.54 as financial stocks took a hit after consumer lender Aiful said it will ask its creditors to accept delays in repayment of $3.1 billion in debts. Aiful fell 27.2% on Friday.

Stocks in Hong Kong lost 0.7%, while China's Shanghai index fell 3.2%. The Kospi in South Korea gained 0.3%.

Stocks in London, Frankfurt and Paris in Europe were mixed after Lloyd's, in which the U.K. government holds a 43.4% stake, said Friday improving economic conditions were causing it to rethink the terms on which it agreed to enter the U.K. toxic-asset plan in March.

"All possibilities remain open and, as part of this process, Lloyds is focused on ensuring that any potential alternatives to GAPS would be in the interests of shareholders and other stakeholders," the bank said in a statement.

The bank had said in March it would place 260 billion pounds ($425 billion) of the toxic assets in the program, which would have raised the U.K. government's stake in the bank to 65% from 43.4%.

Shares of Lloyd's fell about 1.5% in London.

Futures in the U.S. were lower, indicating a downside open Friday on Wall Street.

On Thursday, the Dow Jones Industrial Average fell 7.79, or 0.1%, to 9,783.92 after hitting a high for the year the day before. The S&P 500 index fell 3.27, or 0.3%, to 1,065.49, and the Nasdaq composite index fell 6.40, or 0.3%, to 2,126.75.

Oil prices fell 82 cents Friday to $71.65 in electronic trading on the New York Mercantile Exchange.

The dollar rose to 91.13 yen from 91.03 yen. The euro fell to $1.4682 from $1.4741.

-- Reported by Joseph Woelfel in New York.

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