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Mining and materials stocks sent Japan's benchmark index lower on Friday, capping a volatile week for shares across the region.

Still, the Nikkei Stock Average is headed to gain 2.2% for the week, making it one of the better performing Asian stock benchmarks. The Shanghai Composite Index and Hang Seng Index are on track to lose 2.8% and 1.9%, respectively.

But concerns about volatile oil prices—and more recently gloomy updates from some of the largest U.S. retailers—were on display on Friday, weighing on most major stock benchmarks.

"Two or three weeks ago, there was a semi-optimistic wait-and-see mode amongst investors," said Andy Maynard, head of Asian equities at HSBC. Now, "we are seeing outflows."

The Nikkei, initially buoyed by a strengthening dollar against the Japanese yen overnight, was recently down 1.1%. A weaker yen helps the competitiveness of Japanese exporters, thereby supporting their shares. But the local currency reversed its overnight move and was last up 0.2% against the dollar.

Leading the declines in Japan on Friday was oil explorer Inpex Corp., which fell 2.4% to 827 yen, as crude oil prices fluctuated in recent sessions. Brent crude was last off 0.7% at $47.74, also reversing overnight gains

Meanwhile, commodities firm Mitsubishi Materials Corp. tumbled 11% to ¥ 313 after the company provided lower sales and profit forecasts for the fiscal year that started in April, citing a cloudy outlook for metal prices.

Elsewhere in the region, the Hang Seng Index was recently off 0.9%, Australia's S&P ASX 200 was down 0.7% and the Shanghai Composite Index was flat.

Pressures on regional stock this week have been mostly global: Both fluctuations in oil prices and the coming June vote on 'Brexit' are causing uncertainty for traders. Meanwhile, U.S. corporate announcements have been disappointing and the U.S. Federal Reserve has toned down its outlook for the American economy.

Nonetheless, Japanese shares have fared better this week as the yen has weakened by about 1.6% in the same period.

Foreign investors have been snapping up Japanese shares recently, buying a net 1.1 trillion yen ($10.1 billion) worth of equities in April, after three months of net selling, according to latest data from Japan's Ministry of Finance. Traders also say the Japanese government has been buying stocks to support the market.

"Japan's bucked the selling, amid [the] at-home economic initiative," Mr. Maynard said.

Still, he added that for most of the region, especially China and Hong Kong, "people are looking to shift positions [in stocks] to raise cash, either to sit on cash or to buy bonds."

Kosaku Narioka contributed to this article.

Write to Chao Deng at Chao.Deng@wsj.com

(END) Dow Jones Newswires

May 13, 2016 00:55 ET (04:55 GMT)

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