Australian shares fell on Friday as investor concerns about a standoff between Washington and Beijing over Hong Kong tempered optimism about a re-opening of the world economy, while financial stocks were set to snap a four-day rally.
In the latest dispute between the world's two biggest economies, U.S. President Donald Trump said he will give a news conference on China on Friday, as his administration moves to pressure Beijing over its treatment of Hong Kong.
Meanwhile, Hong Kong's government warned Washington that withdrawing its special U.S. status could be a "double-edged sword" and urged the United States to stop interfering in its internal affairs.
The S&P/ASX 200 index <.AXJO> fell 1.38% to 5,770.2 points by 0115 GMT. The index is set to post its fifth straight weekly gain.
Financial stocks <.AXFJ> slumped 2.51%, but the index was on track to post its best weekly gain.
Virgin Money UK PLC <VUK.AX> shed 8.96%, while Westpac Banking Corp <WBC.AX> lost 4.51%.
ASX 200 Energy index <.AXEJ> dropped 1.09%, led by New Hope Corp Ltd <NHC.AX>, down 8.67%, followed by Whitehaven Coal Ltd <WHC.AX> that lost 4.29%.
Brent crude <LCOc1> futures fell 1.47% to $34.77 a barrel, while U.S. West Texas Intermediate (WTI) crude <CLc1> lost 2.22% to $32.96 per barrel.
Meanwhile, gold stocks <.AXGD> rose 2.93%, led by Northern Star Resources Ltd <NST.AX>, up 7.05%, followed by Bellevue Gold Ltd <BGL.AX>, gaining 5.31%.
The number of issues on the ASX that advanced were 511, while 698 declined as a 0.7-to-1 ratio favoured decliners.
The most heavily traded shares by volume were Southern Cross Media Group Ltd <SXL.AX>, Tabcorp Holdings Ltd <TAH.AX> and Incitec Pivot Ltd <IPL.AX>.
In New Zealand, the benchmark S&P/NZX 50 index <.NZ50> fell 0.19% to 10,836.
The top percentage losers in the benchmark <.NZ50> were Westpac Banking Corp <WBC.NZ> down 2.64%, followed by Meridian Energy Ltd <MEL.NZ> losing 2.45% and Tourism Holdings Ltd <THL.NZ> dropping 2.31%.
(Reporting by Shreya Mariam Job in Bengaluru, Editing by Sherry Jacob-Phillips)
