Chinese stocks' August rally, fuelled by surging shares in semiconductor firms, ground to a halt this week, with Cambricon Technologies crashing 14 percent on Thursday, as investors weighed potential regulations.

China's blue-chip CSI 300 benchmark was recovering after falling 2.1 percent a day earlier -- the largest drop since early April, when US President Donald Trump's tariff threats caused the index to drop more than seven percent in one day.

Tokyo and Hong Kong were both up on Friday morning, and Shanghai's benchmark index, which was tracking down in early trading, had clawed back up.

Analysts said the decline followed a Bloomberg report that China's financial regulators may implement measures to cool the pace of the selloff in stocks.

"The selloff is more than a blip; it's the first crack in the facade of a $1.2 trillion melt-up that had traders whispering about deja-vu and a speculative frenzy reminiscent of the 2015 'crazy bull'," said Stephen Innes of SPI Asset Management.

Elsewhere, the global bond market eased further after yields had jumped earlier in the week on concerns over mounting government debt.

Stock markets climbed on Wall Street and global bonds stabilised as investors look to US government jobs data due out on Friday to cement rate-cut bets.

"All eyes will be on Friday's nonfarm payrolls report with bad news likely to be interpreted as good news as it will raise the market probability that the Fed cuts rates," noted Victoria Scholar, head of investment at Interactive Investor.

Weekly data released Thursday showed more first-time claims for unemployment benefits in the United States than analysts had expected, while figures from payroll firm ADP showed slowing private sector hiring in August.

David Morrison, senior market analyst at financial services provider Trade Nation, said the employment data "is likely to play a central role in shaping the direction of equities, currencies and commodities over the coming fortnight".

Oil prices extended losses Friday in anticipation of excess supply in the coming months, as OPEC+ nations are expected to further unwind production cuts.

"The market suspects the cartel may pump more barrels into an already heavy market," Innes said.

As global producers outside OPEC+ ramp up, and tariffs curbing demand, oil has tumbled 12 percent this year.

In company news, shares in Japanese motor maker Nidec had clambered back up 3.7 percent after plunging 22 percent over reports it launched a probe into "improper accounting" at its Chinese subsidiary.

- Key figures at around 0300 GMT -

Tokyo - Nikkei 225: UP 0.7 percent at 42,890.85

Hong Kong - Hang Seng Index: UP 0.1 percent at 25,203.75

Shanghai - Composite: UP 0.2 percent at 3,774.84

London - FTSE 100: UP 0.4 percent at 9,216.87 (close)

Euro/dollar: UP at $1.1668 from $1.1649 on Thursday

Pound/dollar: UP at $1.3453 from $1.3437

Dollar/yen: DOWN at 148.18 yen from 148.45 yen

Euro/pound: UP at 86.73 pence from 86.72 pence

West Texas Intermediate: DOWN 0.3 percent at $63.32per barrel

Brent North Sea Crude: DOWN 0.2 percent at $66.84 per barrel

New York - Dow: UP 0.8 percent at 45,621.29 (close)