A softer yen was not enough to help Japan's Nikkei, typically an aid for local exporters, which was 0.5% down in early trading, as investors stepped back after a 5% gain on the benchmark over the last four trading days. Leading the retreat were telecoms shares--Nippon Telegraph and Telephone Corp lost 0.9% and Softbank declined by 1.1%.

South Korea's Kospi, which also gained 5% in the first four sessions of the week, was up 0.2% in early trading. Australia's S&P ASX 200 was flat.

In company news, Olympus Corp. lost 2.3% in Tokyo after the firm announced that its first quarter net loss widened significantly on year. The company also said that it is looking for a partner to invest around Y50 billion to bolster its finances.

-Write to Daniel Inman at Daniel.Inman@wsj.com

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