The dollar drifted lower due to fiscal and trade jitters while gold eased from a two-week high and oil was little changed in Asian trade.

China's Shanghai Composite index slipped 0.18 percent to 3,340.69 despite industrial firms reporting faster profit growth in April. EV maker BYD fell 2.3 percent to extend losses from the previous session after announcing steep discounts across several models.

The yuan slipped against the dollar despite reports that the People's Bank of China has asked major lenders to raise the share of yuan when facilitating cross-border trade.

Hong Kong's Hang Seng index ended up 0.43 percent at 23,381.99, reversing early losses ahead of upcoming China PMI data.

Moody's has affirmed China's A1 sovereign credit rating with a negative outlook but flagged risks from weak consumption and trade war volatility.

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