Asian stocks exhibited a mixed performance on Friday following Beijing's sharp criticism of EU tariffs on Chinese electric vehicles, labeling the measures as protectionist and vowing countermeasures amidst a growing trade spat.
Inflation data from the United States, indicating a downturn, helped mitigate regional losses to some degree.
In Japan, both the yen and bond yields declined as the Bank of Japan hinted at reduced debt purchases, though it did not provide specific figures or a timeline.
In the commodities market, gold saw a slight increase during Asian trading, while oil prices dipped yet remained on track for their best week in over two months.
China's Shanghai Composite Index managed to recover from early losses, closing 0.12 percent higher at 3,032.63. Conversely, Hong Kong's Hang Seng Index fell by 0.94 percent to 17,941.78, primarily due to tariff concerns.
Japanese markets bounced back from initial losses, closing higher after the Bank of Japan announced plans to scale down its extensive bond-buying program, with a detailed reduction strategy to be unveiled within the next one to two years at the upcoming policy meeting in July.
The Nikkei average rose 0.24 percent to 38,814.56, buoyed by reassurance over the central bank's decision to maintain its current bond-buying program in the near term. The broader Topix Index climbed 0.54 percent to 2,746.61, despite a slump in banking stocks.
Seoul's stock market continued its upward trend for the fourth consecutive day, driven by strong performance in technology stocks. Samsung Electronics advanced by 1.3 percent, while LG Energy Solution experienced a 3.9 percent decline.
South Korea's Kospi Index inched up 0.13 percent to 2,758.42 as the government extended a market-wide ban on short-selling stocks through the first quarter of 2025.
In Australia, markets ended on a lower note as investors prepared for the Reserve Bank of Australia's upcoming policy meeting next week.
The benchmark S&P/ASX 200 dipped 0.33 percent to 7,724.30, affected by declines in mining stocks due to pressure on iron ore prices stemming from China's weakening property market. The broader All Ordinaries Index closed 0.35 percent lower at 7,974.80.
Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 Index marginally declined, ending at 11,864.89.
In the United States, stocks finished predominantly higher overnight as May's producer price data contributed to signs of easing inflationary pressures.
Data revealed that the annual rate of producer price growth slowed to 2.2 percent in May from an upwardly revised 2.3 percent in April.
Additional data showed an increase in the number of Americans filing new unemployment claims, reaching a 10-month high last week.
The S&P 500 edged up 0.2 percent, securing its fourth consecutive record close, while the Nasdaq Composite, rich in tech stocks, added 0.3 percent to achieve a new record closing high. In contrast, the Dow slightly dipped by 0.2 percent.
