Asia markets drift lower after Wall Street closes mixed; trade in focus

Hong Kong’s Hang Seng Index lost 0.66 percent as technology in addition to financials weighed on the benchmark. Mainland stocks traded lower by around the same level, with the Shanghai composite down 0.67 percent.

MSCI’s index of shares in Asia Pacific excluding Japan slipped 0.55 percent in Asia morning trade.

Investors within the region digested Thursday’s sell-off in emerging markets, with Brazil leading declines. The iShares MSCI Brazil ETF (EWZ), a U.S. exchange-traded fund tracking Brazilian stocks, dropped 5.13 percent.

Investors turned to bonds amid concerns over emerging markets, with U.S. government debt prices rising within the last session. On Friday, the 10-year U.S. Treasury note yield last stood at 2.94 percent via around 2.97 percent seen within the Wednesday session.

“While there are no obvious catalysts for an apparent broadening of emerging market (albeit excluding Asia) pressures in recent days, This kind of can be valid to speculate in which the European Central Bank’s mid-week signalling in which the conditions for ending its quantitative easing bond buying program look to have fallen into place, can be relevant,” Ray Attrill, head of FX strategy at National Australia Bank, said in a note.

The ECB’s chief economist said earlier within the week in which underlying strength within the euro area was generating the central bank confident about inflation moving toward target, adding in which the institution could discuss how This kind of will wind down its asset-purchasing program next week.

Trade developments also continued to feature prominently, with U.S. Commerce Secretary Wilbur Ross telling CNBC in which a deal had been reached with Chinese telecommunications equipment maker ZTE, which had been crippled after U.S. companies were blocked via selling to This kind of.

The deal will impose a $1 billion penalty on ZTE, which will also need to install a U.S.-chosen compliance team, however can be facing some pushback via U.S. lawmakers.

Investors will also turn their attention to the G-7 summit taking place in Canada on Friday in addition to Saturday, with the issues related to protectionism in addition to international trade supposed to take center stage.

The move lower in Asia came on the back of the mixed close seen stateside. The Dow Jones industrial average rose 0.38 percent, or 95.02 points, to close at 25,241.41. different major U.S. indexes finished the session lower, with the Nasdaq composite declining 0.7 percent in addition to bringing an end to its four-day winning streak as large-cap technology shares fell.

On the energy front, oil prices were steady after advancing within the last session on investor worries about a drop in Venezuelan exports. U.S. West Texas Intermediate crude added 0.17 percent to trade at $66.06 per barrel in addition to Brent crude futures were flat at $77.32 after settling almost $2 higher on Thursday.

Ahead, investors will watch for China trade data scheduled for Discharge at 11:00 a.m HK/SIN.

— CNBC’s Fred Imbert contributed to This kind of report.

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