Asia stocks mixed amid US-China trade uncertainty

Asia markets were mixed in Friday morning trade as investors watch for updates on trade negotiations between the U.S. and China.

Mainland Chinese stocks slipped in early trade, with the Shanghai composite shedding about 0.1% and the Shenzhen component declining 0.34%. The Shenzhen composite also fell 0.402%.

Hong Kong's Hang Seng index rose 0.72% as shares of life insurer AIA jumped more than 1.5%.

The Nikkei 225 in Japan rose 0.74% while the Topix index added 0.85%. South Korea's Kospi gained 0.86%.

Meanwhile, the S&P/ASX 200 in Australia gained 0.76% as almost all the sectors traded higher.

Overall, the MSCI Asia ex-Japan index traded 0.68% higher.

US-China trade watch

Investors continue to monitor U.S.-China trade developments. White House economic adviser Larry Kudlow said Thursday that Washington is "getting close" to a trade deal with Beijing, Reuters reported.

Markets have been on edge for much of the trading week amid uncertainty over the state of U.S.-China trade negotiations.

Earlier this week, reports surfaced that talks between the economic powerhouses hit a snag over agricultural purchases.

Chinese Ministry of Commerce spokesman Gao Feng said Thursday that both countries are holding deep discussions about a "phase one" deal, but noted that the rolling back of some tariffs is key to reaching an agreement.

"The trade war was begun with adding tariffs, and should be ended by canceling these additional tariffs. This is an important condition for both sides to reach an agreement," Feng said Thursday at a weekly press conference.

Eswar Prasad, a professor of trade policy at Cornell University, told CNBC on Friday that the current situation "does not look good."

"At the moment, I think, the Chinese might be quite reluctant to make very significant concessions given that the atmosphere in Washington seems very unpredictable," Prasad told CNBC's "Squawk Box" on Friday. "Even if they make concessions, they could get rolled back."

"I think the prospects for even a phase one deal have somewhat weakened in the last few days," he said.

Overnight stateside, the S&P 500 saw a record close as it nudged 0.1% higher to 3,096.63 stateside. The Dow Jones Industrial Average, on the other hand, ended its trading day just below the flatline at 27,781.96 while the Nasdaq Composite closed fractionally lower at 8,479.02.

U.S. Federal Reserve Chairman Jerome Powell said Thursday "a day of reckoning" for the U.S. "could be quite far off."

"If you look at today's economy, there's nothing that's really booming now that would want to bust," Powell said in testimony before the House Budget Committee.

Currencies and oil

The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 98.153 after slipping from levels above 98.37 yesterday.

The Japanese yen traded at 108.56 against the dollar, having strengthened from levels above 109.2 seen earlier this week. The Australian dollar changed hands at $0.6796 after declining from levels above $0.68 yesterday.

Oil prices rose in the morning of Asian trading hours, with international benchmark Brent crude futures adding 0.43% to $62.55 per barrel. U.S. crude futures gained 0.49% to $57.05 per barrel.

What's on tap:

• Hong Kong: Revised GDP for the third quarter at 4:30 p.m. HK/SIN

— CNBC's Fred Imbert contributed to this report.

Read More