Asian stocks in red as US political concerns increased

Asian equities were mostly lower on Friday, with political concerns over the Trump administration weighing on global market sentiment.

Overnight, The Washington Post said US President Donald Trump has decided to remove White House national security advisor H.R. McMaster. If that decision is confirmed, McMaster would become the third man to leave the administration this month.

In Japan, the Nikkei 225 was down about 0.66 percent, while the broader Topix was down 0.47 percent. The Korean Kospi notched down 0.4 percent despite rising financials and retailers.

Hong Kong's Hang Seng Index was off 0.31 percent, while the mainland index Shanghai composite eased 0.12 percent and the Shenzhen composite fell the same percentage.

Market attention has already shifted to Fed’s next policy announcement on March 21, with most bets placed a 25 basis points rate hike that would take the benchmark rate to 1.50-1.75 percent.

According to Fed funds CME Group’s FedWatch program, market players are currently pricing in a nearly 90 percent chance of a rate adjustment next week. It would be the first hike of 2018.

On the data front, initial jobless claims notched down to 226,000 against an estimated 230,000 reading. The NY Empire State manufacturing index for March surpassed expectations at 22.50.

In other news, Philly Fed manufacturing index for March fell short on expectations at 22.3 vs a forecasted 23.2 reading. The import price index for February rose 0.4 percent.

<<< Asian Stock Indexes >>>

Australia ASX S&P -15.00 -0.25% 6,027.60

Shanghai Composite -13.96 -0.42% 3,277.42

Hong Kong Hang Seng -50.85 -0.16% 31,384.16

Japan Nikkei 225 +29.31 +0.13% 21,806.60

Taiwan TSEC 50 Index -20.35 -0.18% 11,018.45

<<< Next in the United States >>>

Building permits for February and housing starts are due at 12:30 GMT. Industrial production figures are scheduled at 13:15 GMT. JOLTs job openings will be released as of 14:00 GMT, along with Michigan University’s consumer sentiment and expectations.

<<< Next in the Europe >>>

Market players will be focusing on the release of Eurozone’s consumer price index for February. Analysts forecasted a 0.2 percent monthly build. Fourth-quarter wages in the EU are also scheduled at 10:00 GMT, with a 1.8 percent eyed.

FortFS