Asian shares closed mixed on Thursday as U.S.-China trade talks kicked off and investors digested an acknowledgment by the Federal Reserve that inflation had moved nearer its target.
Markets in Japan were closed for holiday. Against the yen, the U.S. dollar softened to trade at 109.65.
In Hong Kong, the Hang Seng Index plummeted 410.51 points, or 1.3%, to 30,313.37
The financial sector was down 1.3% and technology sectors down 1.6%, amid broad-based negativity before the market close.
The decline was likely due to concerns over a trade war, according to one analyst citing a Reuters report in which a Chinese government official said China had a "much greater ability to endure" the effects of a trade war than the U.S.
Chinese smartphone maker Xiaomi on Thursday filed an initial public offering application in Hong Kong. In the filing, the company reported revenue rose 68% to 114.6 billion yuan ($18 billion U.S.) in 2017 and a net loss of 43.9 billion yuan ($6.9 billion U.S.) for the period.
In Korea, markets came under pressure, as banks and manufacturing names were mostly lower, while technology stocks eked out some gains.
Australian markets climbed amid broad-based gains, with gold producers and the materials sector among the best performers.
National Australia Bank announced earlier that its first-half cash profit declined 16 percent. Reuters said the fall came as the bank recorded costs associated with restructuring. Shares closed lower by 0.6%.
CHINA
In Shanghai, the CSI 300 gained 29.35 points, or 0.8%, 8,575.68
Trade was in focus as a U.S. delegation begins negotiations with their Chinese counterparts on Thursday and Friday in Beijing. Treasury Secretary Steve Mnuchin, Commerce Secretary Wilbur Ross and Trade Representative Robert Lighthizer are among the U.S. officials participating in the meeting.
In other markets
In Singapore, the Straits Times Index dropped 39.6 points, or 1.1%, to 3,575.68
In Korea, the Kospi index settled 18.36 points, or 0.7%, to 2,487.25
In Taiwan, the Taiex Index plunged 104.63 points, or 1%, to 10,514.18
In New Zealand, the NZX 50 added 52.64 points, or 0.6%, to 8,546.88
In Australia, the ASX 200 gained 48.09 points, or 0.8%, to 6,098.28
