Tariff worries returned to the fore after U.S. President Donald Trump threatened Canada with a 50 percent tariff on all aircraft sold in the United States and also signed an executive order that would impose a tariff on any goods from countries that sell or provide oil to Cuba, a step that raises fresh pressure on Mexico.

The dollar traded higher, clawing back some of its slide on the week, as U.S. lawmakers reached an agreement to avoid a partial government shutdown and President Trump said he has chosen a very good person to be the new Federal Reserve chairman, with a formal announcement expected later in the day.

Gold extended losses to dip below $5,200 an ounce in Asian trade as traders booked profits after a record rally. Oil prices fell nearly 2 percent after the U.S. eased some sanctions on the oil industry in Venezuela.

China's Shanghai Composite index fell 0.96 percent to 4,117.95 as a sudden drop in gold prices combined with regulatory action to limit speculative losses sparked heavy selling in miners and other materials stocks.

Hong Kong's Hang Seng index tumbled 2.08 percent to 27,387.11, ending a seven-day rally amid steep losses in non-ferrous metals and mining stocks.

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