Asian markets were narrowly mixed on the last day of the trading week amid a backdrop of global trade-related developments and news out of Washington.
In Tokyo, the Nikkei 225 gave up earlier gains to slip 0.24 percent and the broader Topix was off by 0.13 percent. Among major sectors, automakers came under pressure while technology names traded mixed.
Meanwhile, in Seoul, the Kospi edged down 0.18 percent as declines in heavyweight tech names dragged the index lower despite gains in financials and retailers. Manufacturing stocks were mixed.
Greater China markets searched for direction, with Hong Kong’s Hang Seng Index lower by 0.27 percent. Property names and the energy sector drove losses, while the technology sector traded higher.
Markets on the mainland traded higher, with the Shanghai composite clinging to slight gains. The index edged up by 0.06 percent and the smaller Shenzhen composite added 0.2 percent.
Down Under, the S&P/ASX 200 edged up by 0.2 percent, with all sectors gaining except financials, health care and gold producers.
The consumer staples subindex popped 3.23 percent as Wesfarmers jumped 6.7 percent following news it would be spinning off its Coles supermarket business.
Trade-related developments were once again in focus, with the Wall Street Journal reporting that the Trump administration was looking to impose tariffs on at least $30 billion of imports from China. Reuters on Tuesday said the figure could be around $60 billion.
Some investors are concerned that tariffs could result in retaliatory actions taken by U.S. trading partners, which could in turn lead to a trade war that dents growth.
Despite that, White House National Trade Council Director Peter Navarro on Thursday told CNBC that the U.S. could implement tariffs on imports without causing a trade war.
Political developments were also in focus after the Washington Post reported that President Donald Trump has decided to remove White House national security advisor H.R. McMaster from the administration.
The dollar slipped against the safe-haven yen. The greenback traded at 105.97 by 9:59 a.m. HK/SIN after touching as high as 106.38 earlier in the session.
U.S. stocks were pressured in the overnight session by news that special counsel Robert Mueller had subpoenaed Trump’s businesses. It was unclear what information Mueller requested, but the New York Times reported that the probe could last several more months.
U.S. stock indexes closed mixed in the last session, with the S&P 500 shedding 0.07 percent to end at 2,747.33.
The dollar index, which tracks the greenback against a basket of rivals, stood at 90.168 by 9:39 a.m. HK/SIN, slightly extending gains made overnight.
Some analysts attributed the firmer dollar to comments from Larry Kudlow, the incoming top White House economic advisor, on Wednesday. Kudlow had told CNBC he favored a stronger dollar. (Larry Kudlow has been a long-time contributor to CNBC.)
The overnight gains in the currency also came ahead of the Federal Reserve’s meeting next week.
In corporate news, Samsung’s latest Galaxy S9 and S9+ smartphone models will be available in several markets on Friday after their initial launch in February. Shares of Samsung Electronics were down 1.94 percent as other South Korea tech names also recorded declines.
Also of note, Alibaba Group, currently listed in New York, is looking to list in China, according to the Wall Street Journal. The e-commerce giant told CNBC it would consider a listing on the mainland if regulation allowed for it.
On the earnings front, several Hong Kong corporates, including CK Hutchison, CK Assets and China State Construction, are due to report results.
Disclosure: Larry Kudlow has been a long-time contributor to CNBC.
— CNBC’s Jacob Pramuk contributed to this report.
