MSCI's broadest index of Asia-Pacific shares outside Japan swerved in and out of the red and was last a shade lower at 567.94, still in striking distance of a 10-year peak of 570.21 scaled on Thursday. Australian stocks climbed 0.35 percent and Japan's Nikkei rose 0.2 percent. South Korea's KOSPI slipped 0.4 percent.
SYDNEY: Asian share markets faltered on Thursday as unease over China's economic outlook eroded early gains, though an anti-climactic end to the latest chapter in the Brexit saga did offer sterling a moment's peace.
MSCI's broadest index of Asia-Pacific shares outside Japan edged down 0.1 percent in thin trade, while E-Mini futures for the S&P 500 slipped 0.3 percent.
Japan's Nikkei reversed course and dropped 0.3 percent.
China's blue chip index eased 0.3 percent, led by a fall in the country's second largest home appliances maker, Gree Electric <00065.SZ>, after it warned of slower profit growth as the economy loses steam.
Dealers could find no single spark for the mood shift, but noted China's central bank had injected record amounts of money - around 1.14 trillion yuan ($168.74 billion) - into the financial system this week, stirring concerns about the risk of a cash crunch.
Adding to the caution was news that a bipartisan group of U.S. lawmakers introduced bills on Wednesday that would ban the sale of U.S. chips or other components to Huawei Technologies Co Ltd
That came shortly before the Wall Street Journal reported federal prosecutors were investigating allegations that Huawei stole trade secrets from U.S. businesses.
Such moves could inflame tensions between Beijing and Washington and make a trade deal yet harder.
Separately, Handelsblatt reported the German government is actively considering stricter security requirements and other ways to exclude Huawei from a buildout of fifth-generation (5G) mobile networks.
Also lurking in the background were worries the U.S. government shutdown was starting to take a toll on its economy.
White House economic adviser Kevin Hassett said the shutdown would shave 0.13 percent off quarterly economic growth for each week it goes on.
PLAN B
As expected, British Prime Minister Theresa May narrowly won a confidence vote overnight and invited other party leaders for talks to try to break the impasse on a Brexit divorce deal.
An outline for Plan 'B' is due by Monday and the market assumes there will have to be an extension of the Article 50 exit date past March 29.
"Nothing has happened in the last 24 hours to dissuade us from the view that we are headed in the direction of an Article 50 delay, a softer Brexit or no Brexit," said Ray Attrill, head of FX strategy at NAB.
"But it remains too soon to be buying sterling with your ears pinned back," he added, noting many uncertainties remained.
All of which left the pound firm at $1.2887
The U.S. dollar was otherwise mixed, easing a touch on the yen to 108.88
In commodity markets, palladium
Oil prices eased as traders worried about the strength of demand in the United States after gasoline stockpiles there grew last week by far more than analysts had expected. [O/R]
U.S. crude futures
Earlier report:
Asia shares edge up, pound gets moment's peace
SYDNEY: Asian shares crept higher on Thursday as upbeat bank earnings bolstered Wall Street, while an anti-climactic end to the latest chapter in the Brexit saga gave sterling a moment's peace.
MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.1 percent, with Australia and South Korea's KOSPI ahead by 0.2 percent each.
Japan's Nikkei climbed 0.3 percent.
However, E-Mini futures for the S&P 500
On Wall Street, strong earnings from Bank of America
The Dow <.DJI> ended Wednesday with gains of 0.59 percent, while the S&P 500 <.SPX> added 0.22 percent and the Nasdaq <.IXIC> 0.15 percent.[.N]
Investors in Asia might be less encouraged by a Wall Street Journal report that U.S. federal prosecutors were investigating Huawei Technologies, the world's largest telecommunications equipment maker, for allegedly stealing trade secrets from U.S. businesses and could soon issue an indictment.
Such a move could inflame tensions between Beijing and Washington and make a trade deal yet harder.
China's central bank on Wednesday moved to avert a cash crunch in the economy by injecting a record $83 billion into the country's financial system.
Also looming in the background were concerns the U.S. government shutdown was starting to take a toll on its economy.
White House economic adviser Kevin Hassett said the shutdown would shave 0.13 percent off quarterly economic growth for each week it goes on.
PLAN B
As expected, British Prime Minister Theresa May narrowly won a confidence vote overnight and invited other party leaders for talks to try to break the impasse on a Brexit divorce deal.
An outline for Plan 'B' is due by Monday and the market assumes there will have to be an extension of the Article 50 exit date past March 29.
"Nothing has happened in the last 24 hours to dissuade us from the view that we are headed in the direction of an Article 50 delay, a softer Brexit or no Brexit," said Ray Attrill, head of FX strategy at NAB.
"But it remains too soon to be buying sterling with your ears pinned back," he added, noting many uncertainties remained.
All of which left the pound firm at $1.2877
The lessening of Brexit risk pressured the safe-haven yen and helped the U.S. dollar up to 109
In commodity markets, palladium
Earlier report:
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