HONG KONG: Asian shares mostly fell on Friday following weak economic data from the United States, showing growth had slowed, while Sydney was hurt by the increasing strength of the Australian dollar.
Hong Kong slipped 0.35 percent and Seoul fell 0.72 percent, or 15.99 points, to 2,192.36 while Sydney ended 1.02 percent, or 49.8 points, down to 4,823.2.
However, Shanghai gained 0.70 percent in the afternoon.
Tokyo was closed for a public holiday.
Sydney fell as exporters were hurt by the stronger "Aussie", which is approaching US$1.10 after credit ratings agency Standard & Poor's last week downgraded its outlook on US debt for the first time.
In early Asian trade the Australian unit, which is at its highest level against the dollar since it was allowed to float freely 19 years ago, fetched US$1.0947 before easing to US$1.0900.
"The strong Aussie dollar has significantly increased the risk of currency-related downgrades for industrials with high foreign earnings," Southern Cross equities director Charlie Aitken told Dow Jones Newswires.
"It's also outpacing commodity prices which is negative for our listed resource stocks."
The greenback was pressed on Thursday after US Fed Chief Ben Bernanke said there was no timetable to raise interest rates while its present loose monetary policy would continue through to June.
Despite the S&P setback regional currency investors have moved out of the greenback and into more risky assets in recent months because of improving sentiment towards the global recovery.
The euro was at $1.4829 in morning trade, up from $1.4822 late Thursday in New York while it also gained to 121.02 yen from 120.70 yen.
But the greenback firmed slightly to 81.61 yen from 81.48 yen after recent losses.
Asian shares fell after the Commerce Department unveiled data Thursday showing the US economy slowed in the first quarter, growing 1.8 percent year-on-year in the January-March period after adding 3.1 percent in the final three months of 2010.
Government spending cuts and the impact of inflation on consumers weighed heavily on the data, which was in line with expectations.
Also on Thursday the Labour Department reported new claims for unemployment insurance benefits surged more than expected last week to 429,000, the highest level since January.
Shares on Wall Street managed to eke out further gains thanks to another strong set of corporate reports.
The tech-rich Nasdaq edged up 0.09 percent after it hit on Wednesday its highest peak since 2000.
The Dow added 0.57 percent and the S&P 500, a broad measure of the markets, rose 0.36 percent, with both indexes at three-year highs.
In Seoul Samsung fell 0.7 percent after reporting a 30 percent fall in first quarter net profit because of poor demand for its flat panel and television business.
And in Hong Kong the first Yuan-denominated initial public offering outside mainland China slipped almost seven percent on its debut.
Oil was lower on concerns about demand after the weak US growth figures.
New York's main contract, light sweet crude for delivery in June, fell 36 cents to $112.50 per barrel in the afternoon.
London's Brent North Sea crude for June delivery dipped 32 cents to $124.70.
Gold closed at $1,535.00-$1,536.00 an ounce in Hong Kong, up from Thursday's finish of $1,533.00-$1,534.00.
Taipei fell 0.36 percent, or 32.90 points, to 9,007.87.
Taiwan Semiconductor Manufacturing Company was 0.27 percent higher at Tw$73.2 while Hon Hai fell 0.46 percent to Tw$108.5.
Manila ended up 0.95 percent, or 40.68 points, at 4,319.51.
Philippine Long Distance Telephone gained 1.0 percent to 2,486 pesos; Lopez Holdings added 4.2 percent to 6.40 pesos while Philex Mining was up 2.3 percent at 17.87.
Wellington rose 0.44 percent, or 15.57 points, to 3,519.33.
Retailer The Warehouse Group rose 1.4 percent to NZ$3.65, Air New Zealand was unchanged on NZ$1.11 and Telecom Corp slipped 0.5 percent to NZ$2.17.
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