Investing.com - Asian shares eased on Friday with sentiment downbeat as the Wall Street ended weaker after hitting fresh records this week.
The Nikkei 225 dropped 0.6% as bank stocks struggled with Mitsubishi UFJ down 0.87% and Mizuho lower by 0.42%.
In Japan, earlier data showed core CPI rose 0.1% year-on-year in January, edging above a flat expectation and marking the first gain in more than a year led by higher energy costs and more consumer spending. But household spending eased 1.2% year-on-year. Unemployment fell to 3.0% from 3.1%.
Exporters mostly slipped as the yen strengthened with Toyota down 0.46%, Mitsubishi Electric easing 1.42% and Nikon off 1.46%.
In Hong Kong, the Hang Seng index fell 0.63%, while on the Mainland, the Shanghai composite dipepd 0.37%. Data in China showed the Caixin services PMI edged down o 52.6, well below the 53.3 seen as consumer spending during the Chinese New Year holidays may not have been as robust as expected.
Australia's S&P/ASX 200 fell 0.87% with he heavily-weighted financial sector down 0.79 percent as major banks lost ground.
Overnight, U.S. equities closed lower on Thursday, as markets retreated from record highs while Snap ended its debut session up 44%. The Dow Jones Industrial Average closed down around 112 points at 21,002. The S&P 500 shed 0.59% and the Nasdaq Composite ticked lower to close at 5,861 down 0.73%.
In what was a quiet day for top-tier U.S. economic data releases with initial jobless claims the only event of note on the calendar, Snap’s market debut was closely watched by market participants.
Snap Inc (NYSE:NYSE:SNAP) hit the tape in its first day of trading at $24 per share, and gained more than 50% to $26.05 by 14:00 EST, as investors continued to clamour for shares Snap, the parent company of the photo messaging service Snapchat.
The euphoria over one of the most anticipated tech companies to debut on the market failed to extend into other sectors, as upbeat U.S. jobless claims had little impact on the market.
Initial jobless claims fell by 19,000 to 223,000 for the week ended February 25, the Labor department said on Thursday. Analysts expected jobless claims to rise by 1,000 to 243,000 last week.
Financials, mostly banks, weighed on overall performance, despite increased expectations of a March rate hike, after several Federal Reserve officials supported the view that the U.S. central bank should raise interest rates sooner rather than later.
Most recently, Fed Governor Lael Brainard said Wednesday evening the Fed could raise rates "soon," while Fed Governor Jerome Powell said Thursday that “the case for a rate increase for March has come together”.
According to Investing.com’s Fed rate monitor tool, nearly 80% of traders expect a rate hike in March, compared to just over 60 percent on Wednesday.