Asian stocks mixed as U.S.-China tensions mount

Asian stocks were mixed earlier on Friday, slowing down its months-long rally since March.

Hong Kong’s Hang Seng Index rose by 0.12% at 10:38 PM ET (3:38 AM GMT), taking back some lost ground from the previous session.

China’s Shanghai Composite climbed up by 0.05%, while the Shenzhen Component lost 0.12%.

Investors are keeping an eye on the piling tensions between the U.S. and China after Washington on Thursday debated on whether to impose sanctions against entities that were involved with China’s new national security laws.

However, U.S. Trade Representative Robert Lighthizer said overnight that he found the progress of the U.S.-China phase one trade deal to be “very good”.

Japan’s Nikkei also fell by 0.24%, while South Korea’s KOSPI was up 0.67%.

Down Under, the ASX lost 0.09%.