A wave of pessimism in Tokyo spread across the region yesterday and left most Asian bourses in the red at the end of a volatile week.

Tokyo stocks plunged 2.75 per cent, as a rising yen raised worries that demand for the country's exports could decline.

There is growing concern among investors in Japan that president Shinzo Abe's strategy to revitalise the dormant economy may not be effective, said IG Markets strategist Stan Shamu in an interview with Bloomberg.

"(This) is driving weakness in the markets," he said.

The dour mood affected others across the region, with Hong Kong retreating 0.6 per cent, Seoul falling 0.6 per cent, Shanghai declining 1.45 per cent and Taipei losing 0.8 per cent.

The benchmark Straits Times Index here fell 12.71 points, or 0.39 per cent, to 3,205.24, but it is still 0.4 per cent higher than a week ago.