Asian Shares Retreat As Traders Pare Fed Rate Cut Bets

Asian stocks declined on Friday as traders priced in less monetary-policy easing by the Federal Reserve this year and waited for the U.S. earnings season to kick off with large-cap banking names.

Higher Treasury yields underpinned the dollar and oil resumed gains while gold surged to $2,400 per ounce as Israel prepared for a strike by Iran or its proxies.

China's Shanghai Composite index dropped 0.49 percent to 3,019.47 as the U.S. crackdown on China's tech sector intensified.

The United States has added six Chinese companies to an export blacklist accusing them of seeking to acquire AI chips for China's military or helping to procure drones for use by Russia.

Investors also looked ahead to a rate decision by the People's Bank of China on Monday, with the central bank expected leave the key policy rate unchanged.

Hong Kong's Hang Seng index fell 2.18 percent to 16,721.69 as China's March exports and imports figures missed estimates by large margins.

Exports fell 7.5 percent year-on-year in the month, while imports unexpectedly shrank 1.9 percent, customs data showed.

Japanese stocks eked out modest gains as the dollar surged to another 34-year high above 153 yen on fading hopes for rate cuts.

The Nikkei average inched up 0.21 percent to 39,523.55 while the broader Topix index added 0.46 percent to close at 2,759.64.

Chip-related stocks tracked U.S. technology shares overnight, with Advantest and Tokyo Electron rising 0.9 percent and 1.5 percent, respectively.

Property developer Mitsui Fudosan soared 7.8 percent on share buyback news. Uniqlo-parent Fast Retailing slumped 4.4 percent after leaving its annual operating profit forecast unchanged.

Seoul stocks fell sharply, with the Kospi average closing down 0.93 percent at 2,681.82 after the Bank of Korea held its base rate steady for a 10th consecutive time as widely expected to combat inflation.

Australian markets edged lower as miners succumbed to profit taking after recent string of gains. Energy stocks also declined while gold miners surged on rising bullion prices.

The benchmark S&P ASX 200 dipped 0.33 percent to 7,788.10 while the broader All Ordinaries index settled 0.30 percent lower at 8,050.20.

Across the Tasman, New Zealand's benchmark S&P/NZX 50 index finished marginally lower at 11,931.32 ahead of March-quarter CPI data due next week.

U.S. stocks rebounded overnight following Wednesday's selloff on concerns surrounding stubborn inflation and the outlook for interest rates.

The tech-heavy Nasdaq Composite jumped 1.7 percent to a new record closing high and the S&P 500 climbed 0.7 percent as a measure of producer price inflation for March came in below estimates.

The Dow ended essentially unchanged as more Fed officials indicated there is no rush to cut rates.

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