The Hang Seng Index declined 0.7% for the week as it slid 1.4% to 22,564.82 Friday. The decline wiped not just this week's advance, but also a part of the 1.7% relief rally between Nov. 21 and Nov. 25 that halted a four-week losing streak.

Galaxy Entertainment Group and Sands China, investor darlings and the gauge's best performers this year, fell at least 3.9% on Friday to rank among the worst performers during the week. The losses came amid reports that Macau will require travelers to and from the former Portuguese colony to disclose cash equivalents in excess of $15,000. CNOOC added 3% and PetroChina rallied 2.4% this week following OPEC's agreement to cut members' oil output. Brent crude rallied almost 7% overnight, adding to Wednesday's near 9% jump.

U.S. 10-year yields rose to the highest level since June last year overnight amid soaring crude prices and as manufacturing activity data beat expectations. Nervousness ahead of today's U.S. jobs data also contributed to the rally in yields.

In addition to the U.S. nonfarm payrolls data for November due later Friday, which may further bolster the case for a rise in U.S. borrowing costs in December, European event risk and political uncertainty also kept investors concerned. Italy holds a referendum on constitutional reform and Austrians will vote in a president on Sunday. Also seen as adding to the uncertainty, French President Francois Hollande has said he won't seek a reelection.

"There are lots of good reasons for people to be cautious again," said Andrew Sullivan, managing director for sales trading at Haitong International Securities in Hong Kong. The Hang Seng Index "tested 23,000 yesterday, but was unable to hold or build on that, so it's not unusual for the market to test and see where the support is and where the resistance is."

Regional stocks fell as well, with the Nikkei Asia300 Index dropping 0.9% to 1,043.86.

Over in mainland markets, the Shanghai Composite ended 0.9% lower on Friday for a weekly decline of 0.6%, its worst performance since the end of September, as 10-year bond yields rose above 3%, fueling concerns that liquidity conditions were becoming tighter.

The yuan was poised for its best weekly performance in four months, having strengthened 0.5%, as the central bank stepped up efforts to contain the currency's fall. It was little changed at 6.8826 to a dollar on Friday.

China is expected to release November inflation figures next week, as well as monthly foreign reserves data, which may signal how active the nation's central bank has been in the market as the yuan weakened to eight-year lows.