Asian stocks closed lower on Thursday, with China markets falling back into negative territory as investors digested developments related to the U.S. stance on foreign investment amid lingering trade concerns.
In Japan, the Nikkei 225 dipped 1.38 points to 22,270.39, off its lows of the day.
Mining stocks and semiconductor plays rose. Airline names, however, continued their descent, with the Topix air transport subindex down 1.6%, while automakers proved to be a bright spot, with Toyota up 1.1%.
Against the yen, the U.S. dollar firmed to 110.40
In Hong Kong, the Hang Seng regained 141.06 points, or 0.5%, to 28,497.32, as energy shares and the information technology sector gained, while declines in real estate stocks capped gains. Developers like Country Garden lost 3.3%, and Evergrande was down 4.5%, before the market close.
Over in Seoul, the Kospi declined 1.2% to end at 2,314.24 as technology stocks struggled. Samsung Electronics and SK Hynix were down 2.4% and 2%, respectively, despite the former settling a dispute with Apple over patents.
In individual movers, shares of Korean Air Lines sank 3.6% as company chairman Cho Yang-ho was questioned over alleged tax evasion in Seoul on Thursday.
Australian markets found their way upward, with gains in the heavily weighted financials sector buoying the broader index. The energy sub-index also contributed to gains, rising 1.8% and extending gains made in the last session on the back of the recent climb in oil prices.
CHINA
In Shanghai, the CSI 300 slid 35.73 points, or 1%, to 3,423.53
Trade jitters have weighed on investor sentiment in recent weeks, with markets in China, in particular, taking a beating amid worries over the potential economic impact of the Trump administration's trade policies.
For the month, the CSI 300 has declined more than 9%.
The broader move lower in Asian markets on Thursday came after the U.S. government said it intends to use the Committee on Foreign Investment in the United States (CFIUS) review process to address concerns over foreign acquisitions of U.S. technologies.
The development is seen as softer than plans floated earlier that would have targeted China more specifically.
Still, U.S. Treasury Secretary Steven Mnuchin told the media on Wednesday that the U.S. will be able to block joint ventures if technology transfer is involved. Meanwhile, White House economic advisor Larry Kudlow said the Trump administration's stance on China should not be regarded as a softened one.
Meanwhile, continued declines in the yuan against the dollar saw investors turn bearish against the Chinese currency for the first time in more than one year. The spot yuan was last trading at 6.6199 to the dollar after opening for trade at 6.6177.
In other markets
In Singapore, the Straits Times Index peeped up 2.8 points, or 0.1%, to 3,257.57
The Taiex index slouched 46.75 points, or 0.4%, to 10,654.28
In Korea, the Kospi index backtracked 27.79 points, or 1.2%, to 2,314.24
In New Zealand, the NZX 50 inched up 2.26 points to 8,998.78
In Australia, the ASX 200 gained 19.53 points, or 0.3%, to 6,215.39
