Asian stock markets are mixed on Friday amid cautious trades after U.S. President Donald Trump cancelled the planned historic summit with North Korean leader Kim Jong Un and accused North Korea of displaying "tremendous anger and open hostility". Lingering worries about trade wars also weighed on investor sentiment.
However, some of the markets in the region pared earlier losses after North Korea said it is open to talks with the U.S. despite Trump's cancellation of the summit. Crude oil further slipped in Asian trades after falling overnight.
The Australian market is declining following the negative cues from Wall Street. Banks, mining and oil stocks are weak, while gold miners are higher.
In late-morning trades, the benchmark S&P/ASX 200 Index is losing 13.00 points or 0.22 percent to 6,024.10, off a low of 6,016.60 earlier. The broader All Ordinaries Index is down 12.90 points or 0.21 percent to 6,131.20.
In the mining space, BHP Billiton is declining more than 1 percent, Fortescue Metals is lower by 1 percent and Rio Tinto is down 0.5 percent.
Banks are also mostly lower. Westpac, Commonwealth Bank and National Australia Bank are lower in a range of 0.3 percent to 0.9 percent, while ANZ Banking is edging up less than 0.1 percent.
In the oil sector, Santos is losing 0.5 percent, Oil Search is declining almost 1 percent and Woodside Petroleum is lower by more than 2 percent after crude oil prices fell overnight.
Bucking the trend, Evolution Mining is rising almost 2 percent and Newcrest Mining is advancing more than 1 percent after gold prices surged overnight.
Wesfarmers said it will sell its Homebase business in the UK and Ireland by the end of the financial year to turnaround specialist Hilco Capital and record a loss of A$323 million to A$406 million on the sale. Wesfarmers' shares are adding 0.1 percent.
In the currency market, the Australian dollar is higher against the U.S. dollar on Friday. The local unit was trading at US$0.7577, up from US$0.7563 on Thursday.
The Japanese market recovered after a weak start and is modestly higher following the weak cues from Wall Street. Investor worries eased after North Korea said it is willing to resolve issues with the U.S. despite Trump's cancellation of the summit.
The benchmark Nikkei 225 Index is adding 53.51 points or 0.24 percent to 22,490.52, after opening lower and touching a low of 22,318.15 in early trades.
The major exporters are mixed on a slightly weaker yen. Canon is up 0.2 percent and Mitsubishi Electric is edging up less than 0.1 percent, while Sony is losing almost 1 percent and Panasonic is down 0.3 percent.
Among automakers, Toyota is declining more than 1 percent and Honda is lower by 0.4 percent. In the banking sector, Mitsubishi UFJ Financial is declining 1 percent and Sumitomo Mitsui Financial is down almost 1 percent.
Among oil stocks, Inpex is losing more than 2 percent and Japan Petroleum Exploration is declining more than 3 percent after crude oil prices dipped overnight.
Among the market's best performers, Kirin Holdings is rising more than 4 percent, Sumitomo Dainippon Pharma is gaining almost 3 percent and IHI Corp. is rising more than 2 percent.
On the flip side, Mitsui E&D Holdings is declining more than 3 percent, while Mitsubishi Estate and NSK are losing almost 3 percent each.
In economic news, the Ministry of Internal Affairs and Communications said that overall consumer prices in Tokyo were up just 0.4 percent on year in May. That was beneath expectations for 0.5 percent, which would have been unchanged.
In the currency market, the U.S. dollar is trading in the upper 109 yen-range on Friday.
Elsewhere in Asia, Shanghai, Singapore, South Korea and Hong Kong are also lower, while New Zealand, Malaysia, Indonesia and Taiwan are higher.
On Wall Street, stocks climbed off their worst levels of the day on Thursday, but still closed in negative territory following news that President Donald Trump has called off the historic summit with North Korean leader Kim Jong Un. The president attributed the decision to call off the meeting to North Korea displaying "tremendous anger and open hostility."
The Nasdaq briefly turned positive in late-day trading but closed down 1.53 points or less than a tenth of a percent at 7,424.43. The Dow fell 75.05 points or 0.3 percent to 24,811.76 and the S&P 500 slipped 5.53 points or 0.2 percent to 2,727.76.
The major European markets also moved to the downside on Thursday. While the French CAC 40 Index fell by 0.3 percent, the U.K.'s FTSE 100 Index and the German DAX Index both slumped by 0.9 percent.
Crude for July delivery plunged $1.13 to $70.71 a barrel on the New York Mercantile Exchange Thursday on concerns OPEC may boost output. In Asian trades, crude oil further declined $0.13 or 0.18 percent to $70.58.