Asia stocks mixed after US tech earnings

In Japan, the benchmark Nikkei 225 index fell 0.7 percent to 12,803.70 amid fresh worries over a slump in the U.S. economy following disappointing results from several of the country's high-tech giants.

Stocks in South Korea, Australia, Taiwan and Singapore also retreated.

Meanwhile, Hong Kong's Hang Seng Index climbed more than 0.6 percent to 21874.19, helped by strength on Wall Street and in mainland China markets. Shanghai's main index rose 3.5 percent to 2,778.37.

Many of the region's investors were heartened by another drop in crude oil prices overnight, although they rebounded some Friday on news of an output cut in Nigeria. Midafternoon in Singapore, light, sweet crude for August delivery was up $1.66 at $130.95 a barrel in electronic trading on the New York Mercantile Exchange.

But the positive news was tempered by some earnings announcements in the U.S.

After Wells Fargo & Co. and JPMorgan Chase & Co. topped expectations, Merrill Lynch & Co posted a wider-than-expected $4.9 billion second-quarter loss and said it was selling assets. Earnings by Google also missed forecasts, and Microsoft Corp. offered a softer-than-expected quarterly outlook. However, IBM's second-quarter profit blew past Wall Street estimates.

"The region is still quite cautious," said YK Chan, fund manager at Phillip Capital Management in Hong Kong. "Oil can easily climb again. When you look at the corporate results, there's disappointment. ... The market is still full of uncertainties."

In Japan, some investors feared the earnings announcements would lead Wall Street lower in Friday trade after a two-day rally. Apart from the U.S. factors, the Nikkei index closed lower as investors sold stocks to adjust their positions ahead of a long weekend. Japan's financial markets will be closed Monday due to a public holiday.

Japan's top automaker, Toyota Motor Corp., fell 0.6 percent. Honda Motor Co. rose 0.6 percent