CANBERA (dpa-AFX) - Asian stocks ended mostly lower on Friday due to uncertainty surrounding a court battle about U.S. President Donald Trump's tariffs and rising concerns about U.S. economic stability.
Gold headed for a weekly loss in Asian trade as the dollar ticked higher ahead of a key U.S. inflation reading that may provide further insight into the Federal Reserve's policy trajectory.
Oil prices were set for a second weekly decline, weighed down by expectations of another OPEC+ output hike in July.
China's Shanghai Composite index dropped 0.47 percent to 3,347.49, with Apple suppliers leading losses after U.S. Treasury Secretary Scott Bessent said U.S.-China trade talks are 'a bit stalled,' and getting a deal over the finish line may need the direct involvement of President Donald Trump and Chinese President Xi Jinping.
Hong Kong's Hang Seng index fell 1.20 percent to 23,289.77. Tech stocks like Alibaba and Baidu dropped around 4 percent after the suspension of U.S. chip software exports to China. Li Auto rallied 3.8 percent after reporting better-than-expected Q1 earnings.
Japanese markets lost ground as the yen extended gains against a basket of rivals after the release of hot Tokyo inflation data, which boosted the odds of a rate hike in June.
Investors also digested other important data on factory output, retail sales and unemployment. The Nikkei average fell 1.22 percent to 37,965.10, while the broader Topix index settled 0.37 percent lower at 2,801.57.
Seoul stocks fell sharply on profit taking after rising to a 10-month high in the previous session, driven by gains in tech shares.
The Kospi average ended down 0.84 percent at 2,697.67 amid U.S. tariff concerns and the release of soft industrial production, retail sales and facilities investment figures for April.
Australian markets eked out modest gains despite data showing an unexpected contraction in April retail sales.
The benchmark S&P/ASX 200 edged up by 0.30 percent to 8,434.70 as investors took refuge in defensive sectors such as banks and healthcare. The broader All Ordinaries index closed 0.26 percent higher at 8,660.30.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 index rallied 1.12 percent to 12,418.89 on the back of declining bond yields.
Overnight, U.S. stocks fluctuated before closing moderately higher as strong Nvidia earnings and easing bond yields after a strong note auction offset legal uncertainty surrounding President Trump's reciprocal tariffs.
An appeals court reinstated Trump's 'Liberation Day' tariffs after a trade court blocked them, ruling he overreached his authority.
Earlier, the White House threatened to take the case to the Supreme Court on Friday if its appeal was not granted.
In economic releases, weekly jobless claims rose, corporate profits fell sharply in the first quarter, pending home sales dropped by most since 2022 and revised GDP figures confirmed first contraction since 2022 and showed slowdown in consumer spending growth, reinforcing bets the Federal Reserve will lower interest rates twice by early 2026.
The Dow edged up by 0.3 percent while the tech-heavy Nasdaq Composite and the S&P 500 both added around 0.4 percent.
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