World shares lower as investors consider latest earnings

EARNINGS: Investors were digesting a full plate of corporate earnings. Honda's third-quarter profit more than tripled from the previous year on rising sales and a boost from a U.S. tax cut. Germany's biggest bank, Deutsche, posted its third annual loss in a row on a one-time charge because of U.S. tax overhaul. Earnings season continues into next week, when Nissan and Toyota results are expected.

MARKET VIEW: "For equity markets, there remains much to watch with another 18 percent of the companies on the S&P 500 index due to report in the coming week," Jingyi Pan, market strategist at IG in Singapore, said in a commentary. "Earnings in Asia will also heat up."

GLOBAL OUTLOOK: U.S. manufacturing expanded again in January but at a slower pace, according to a monthly index, while a Commerce Department report found construction spending rose at its weakest pace since the end of the global financial crisis. U.S. monthly job data are due later Friday, providing another indicator for the U.S. economy, the world's biggest, while China trade figures are scheduled for next week, which will give the latest update on the world's No. 2 economy.

YIELDS: The yield on U.S. 10-year Treasury notes, which are the benchmark for interest rates, has risen swiftly, stoking investor concerns that higher rates could weigh on company earnings and equity prices. This week yields hovered at their highest level since April 2014, fueled by the prospect of stronger economic growth in the U.S. and abroad.

SONY BOSS: The Japanese electronics and entertainment company tapped its chief financial officer to take over as president and CEO, taking over from Kazuo Hirai, who is stepping down after orchestrating a turnaround.

ASIAN SCORECARD: Japan's benchmark Nikkei 225 sank 0.9 percent to close at 23,274.53 and South Korea's Kospi fell 1.7 percent to 2,525.39. Hong Kong's Hang Seng index dipped 0.1 percent to 32,601.78 but the Shanghai Composite index recouped early losses in the final hour to close 0.4 percent higher at 3,462.08. Australia's S&P/ASX 200 added 0.5 percent to 6,121.40. Taiwan shares rose while Southeast Asian indexes were mixed.

ENERGY: Oil futures extended gains, with benchmark U.S. crude climbing 31 cents to $66.10 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.07, or 1.7 percent, to settle at $65.80 per barrel on Thursday. Brent crude, used to price international oils, added 23 cents to $69.88 per barrel in London.

CURRENCIES: The dollar rose to $109.73 yen from 109.41 yen in late trading Thursday. The euro weakened to $1.2508 from $1.2514.