Asia-Pacific markets continued their decline on Friday, extending losses from the broad sell-off on Thursday. This followed U.S. Federal Reserve Chair Jerome Powell's statement that inflation remained excessively high and might necessitate reduced economic growth. Although he acknowledged recent data indicating progress in curbing inflation, Powell also emphasized that monetary policy had not yet become too restrictive. Additionally, investors in Asia will be monitoring Japan's September inflation figures, which stood at 3%, marking the 18th consecutive month above the Bank of Japan's 2% target. They will also be keeping an eye on China's one-year and five-year loan prime rates.

In Australia, the S&P/ASX 200 experienced a 0.96% decline in early trading.

Following the release of the inflation reading, Japan's Nikkei 225 fell by 0.87%, and the Topix was down by 0.61%.

South Korea's Kospi led losses in Asia with a 1.23% drop, while the Kosdaq was 1.59% lower.

Futures for Hong Kong's Hang Seng index were at 17,294, indicating a weaker opening compared to the HSI's previous close at 17,295.89.