TOKYO: Asian stocks slipped on Thursday after cautious comments from U.S. Trade Representative Robert Lighthizer dented some of the recent optimism toward Sino-U.S. trade relations, while the dollar held gains, supported by higher bond yields.Australian stocks fell 0.1 percent, South Korea's KOSPI shed 0.5 percent and Japan's Nikkei lost 0.5 percent.
"Lighthizer's comments trimmed a bit of the trade resolution hopes which had grown recently, and equities are exposed to some downward pressure," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management. In currency markets, the dollar index against a basket of six major currencies stood little changed at 96.085.
The greenback traded at 110.865 yen, having bounced back from a low of 110.355 brushed momentarily on Wednesday as tensions between India and Pakistan flared.The Japanese currency often attracts demand in times of political tensions and market turmoil.The pound stood close to a near eight-month peak of US$1.3351 reached the previous day.