Asian shares fall amid China rate hike worries

Asian shares fall amid China rate hike worries

Asian shares fell in early trading Friday after a mixed day on Wall Street and caution over a potential interest rate hike in China.

Japan's Nikkei 225 stock average lost 0.4 percent to 10,241.46 as investors settled December futures and options contracts.

South Korea's Kospi fell 0.2 percent to 1,985.40, losing steam after jumping 1.7 percent the previous day. Australia's S&P/ASX 200 slipped 0.1 percent to 4,737.70. Benchmarks in Taiwan, Singapore and mainland China also retreated.

Investors are awaiting news from China's central bank, which is expected to raise interest rates soon after mainland media reported of the possibility earlier this week.

In New York on Thursday, stocks closed mixed as traders waited to see whether a tax compromise brokered by the White House and Republicans will pass the Democratic-controlled House.

Stocks had edged higher in the morning after a report from the Labor Department showed that first-time claims for unemployment benefits dropped last week to the second-lowest level this year.

The Dow Jones industrial average fell 2.42, or less than 0.1 percent, to 11,370.06. The broader Standard & Poor's 500 index rose 4.72, or 0.4 percent, to 1,233, while the Nasdaq composite index rose 7.51, or 0.3 percent, to 2,616.67.

In currencies, the dollar was trading at 83.71 yen from 83.72 yen late Thursday. The euro stood at $1.3232 from $1.3236.