"Asian stocks moved lower on Friday, as concerns over growing instability in Iraq hit sentiment ahead of a flurry of Chinese economic data.
The Nikkei Share Average was down 0.6%, with the market weighed by a yen that strengthened as news reports showed Iraq edging toward all-out sectarian conflict. The dollar lost 0.4% against the safe haven currency in the previous session, its third consecutive decline, though it picked up a touch in Asian trade. It was last at ¥101.80, compared with ¥101.71 late Thursday in New York.
"Risk-off sentiment and the threat of renewed U.S. military involvement in Iraq, which looks like it might be headed for civil war, will keep investors in sell more—or sidelined," said Norihiro Fujito, a senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities.
The unrest in Iraq also pushed the price of oil 0.8% higher in Asian trade, with the July Nymex crude futures contract trading at $107.33 per barrel, adding to a 2% jump on Thursday.
Furthermore, Asia got a negative lead from U.S. stocks, with Wall Street ending lower after retail sales numbers missed expectations.
South Korea's Kospi lost 1%, Australia's S&P/ASX 200 dropped 0.8%, and Singapore's Straits Times Index lost 0.1%.
The higher cost of oil boosted shares in energy companies, while hurting firms dependent on fuel, such as airlines. In Australia, Woodside Petroleum added 1.9% and Qantas Airways lost 2.4%.
Also in Australia, miners took another hit after the price of iron ore fell to a 21-month low. Fortescue Metals Group and Atlas Iron were down 4.4% and 3.3% respectively.
The main economic highlight for Asia will come from China, with the world's second largest economy releasing industrial output numbers and well as retail sales data. The trend for data this month has suggested stabilization in the Chinese economy, following upbeat export and manufacturing data.
Hong Kong's Hang Seng Index was mostly steady ahead of the data, up 0.1%, and the Shanghai Composite Index was flat"".
