Asian Shares Mostly Lower Amid US-China Tensions

Asian stocks ended mostly lower on Friday amid fresh U.S.-China tensions and growing fears over a no-deal Brexit.

U.S. lawmakers continued negotiations to clinch a deal for a new stimulus package, with Senate Majority Leader Mitch McConnell saying talks could spill into the weekend.

On the Covid-19 front, Moderna said its Covid-19 vaccine received recommendation for emergency use by an expert panel to the U.S. Food and Drug Administration.

Chinese shares ended lower after Reuters reported that the United States is adding dozens of Chinese companies, including the country's top chipmaker SMIC, to a trade blacklist.

The benchmark Shanghai Composite index slipped 9.98 points, or 0.29 percent, to 3,394.90, while Hong Kong's Hang Seng index ended down 179.78 points, or 0.67 percent, at 26,498.60.

Japanese shares edged lower as cumulative Covid-19 cases in Tokyo topped 50,000 and Gov. Yuriko Koike urged people to take increased anti-virus measures during the year-end and New Year holiday period.

The Nikkei average slipped 43.28 points, or 0.16 percent, to 26,763.39, while the broader Topix index ended nearly flat at 1,793.24. Markets showed little reaction to the Bank of Japan's interest rate announcement.

The central bank extended its special support programs for pandemic-hit businesses and unveiled a plan to probe more effective ways to achieve its 2 percent inflation target.

The announcement came after official data showed that core consumer prices fell 0.9 percent in November, which was the fastest in more than a decade.

Sony climbed 2.3 percent on expectations over stay-at-home demand as the peak holiday season approaches. Toyota Motor declined 1.1 percent on profit taking after rallying to the highest level since August 2015 in the previous session.

Australian markets fell sharply as the growing threat of the Northern Beaches coronavirus cluster in Sydney dented hopes of a swift economic recovery from the pandemic.

The benchmark S&P/ASX 200 dropped 81.20 points, or 1.20 percent, to 6,675.50 after hitting a near-10-month high in the previous session. The broader All Ordinaries index ended down 76 points, or 1.09 percent, at 6,924.10.

Airline Qantas lost 3.5 percent and smaller rival Regional Express Holdings plunged 5.4 percent as states and territories announced new border restrictions, throwing Christmas travel plans for thousands of people into chaos.

The big four banks fell between 1.4 percent and 2 percent. Oil Search, Santos and Beach Energy gave up 2-3 percent despite an uptick in oil prices.

Gold miner Evolution Mining rallied 3.7 percent and Northern Star Resources climbed 2.2 percent after gold prices hit a more than one-week high on Thursday on hopes of more U.S. stimulus.

Seoul stocks ended flat with a positive bias as renewed optimism over U.S. stimulus talks offset a spike in local Covid-19 cases. South Korea reported 1,062 new coronavirus cases today, marking its second-highest ever daily tally.

Celltrion advanced 1.3 percent, while SK Hynix shed 0.8 percent and LG Chem declined 1.9 percent.

New Zealand shares tumbled, with the benchmark NZX-50 index ending down 206.77 points, or 1.60 percent, at 12, 682. Flag carrier Air New Zealand lost 3.5 percent after it has been censured and penalized $40,000 for a ''serious'' breach of NZX rules covering the disclosure of material information.

New Zealand posted a merchandise trade surplus of NZ$252 million in November, Statistics New Zealand said in a report. Exports were down 0.2 percent year-on-year, while imports plummeted 17 percent.

Meanwhile, after securing two additional Covid-19 vaccines, the government said every New Zealander will be able to be vaccinated.

U.S. stocks rose overnight to reach new record closing highs as a $900 billion fiscal stimulus deal appeared imminent.

On the economic front, jobless claims rose more than expected while homebuilding and permits increased solidly in November, pointing to sustained housing market strength.

The Dow Jones Industrial Average rose half a percent, the tech-heavy Nasdaq Composite edged up 0.8 percent and the S&P 500 added 0.6 percent.

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