Japanese equities underperformed the region, as Nintendo tumbled on a weak outlook and investors awaited Toyota Motor’s earnings due later today. Benchmarks in mainland China fell, taking a breather after a recent rally. Hong Kong shares climbed as investors looked ahead to a slew of major tech earnings due next week. 

The dollar pushed higher for a third session, helped by a steadying in Treasury yields. The greenback was also supported by comments from Federal Reserve Bank of Minneapolis president Neel Kashkari, who said it’s likely the central bank will keep rates where they are “for an extended period of time”. The yen extended losses despite warnings from the central bank governor. 

“We’re seeing some consolidation in Asia equities today after a lackluster Wall Street session,” said Alvin Tan, head of Asia FX strategy at RBC Capital Markets in Singapore. “The US dollar is gaining ground, and the impact of Tokyo’s suspected interventions last week is fast dissipating as the yen’s large yield disadvantage comes back to the fore.”

Bank of Japan Governor Kazuo Ueda fired a clear warning shot to financial markets about a potential policy move as he beefed up his language on the weak yen. Finance Minister Shunichi Suzuki said the government stands ready to take all possible measures as needed.

In Asia, the focus will be on President Xi Jinping’s trip to Europe and how trade relations will develop from here. In another sign of geopolitical tensions between China and the West, the US has revoked licenses allowing Huawei Technologies Co. to buy semiconductors from Qualcomm Inc. and Intel Corp., according to people familiar with the matter. 

Contracts for US stocks were little changed in Asia trading after the S&P 500 eked out a fourth session of advance. Stocks across the world have been trying to make a comeback after April’s rout, with gains fueled by prospects of Fed rate cuts and solid earnings.  

“There was limited data on corporate earnings to worry the markets, with no unexpected surprises and a lack of major US economic data in the days ahead,” said Kyle Rodda, a senior market analyst at Capital.com. “Debate continues within markets and among policymakers about the appropriate level for interest rates.”

In the corporate world, KKR & Co. will buy the wealth management and corporate trust units of Australian fund manager Perpetual for A$2.175 billion ($1.43 billion), ending a months-long sale process. In South Korea, shares of HD Hyundai Marine Solution Co. jumped as much as 45% in its trading debut after an initial public offering that was priced at the top of a range. 

Elsewhere, oil fell to near the lowest level since mid-March, with a mildly bearish US stockpile report and tensions in the Middle East in focus.