Asian markets were drifting lower in early Friday trading, with China and Hong Kong leading the way with declines around 1%. Korea and Taiwan were down about half that level, following the pullback in the fellow tech-heavy Nasdaq in the U.S. overnight.
Chinese stocks added to Thursday’s weakness, extending recent underperformance in the region. The Shanghai Composite SHCOMP, -1.30% was off 0.9% in early trading, dragged down by real estate, financials and utilities. Small caps were down similarly despite news that the U.S. has reached a deal with China to allow ZTE to get back to business.
The yen pulled back some following overnight gains as risk aversion cooled again. The dollar USDJPY, +0.04% reached session highs of ¥109.85 versus ¥109.75 at Tokyo’s stock-market open. Still, the Nikkei NIK, -0.10% was trading down slightly.