Asia stocks could see bearish correction develop some wheels, Nikkei 225 continues to push lower

Asia equities are somewhat mixed and on hesitant footing to cap off a fouled week. Japan's Nikkei 225 continues to trade near 22,400.00 after slipping this week on renewed fears of a trade war dragging down global growth.

US President Trump pulled out of the US_North Korea summit that was scheduled for next month, and voiced dissatisfaction with the state of trade negotiations with China, and moved to investigate his options on placing hefty tariffs on imported vehicles, which threatens NAFTA renegotiations. The early week's positive reaction to headlines that the US and China would hold off on any further tariffs while they continue to talk trade deals has washed away, and now Friday sees equities second-guessing their bullish stances.

Japan's Nikkei index has managed to pull flat at a 0.07% gain on the day so far, while Australia's ASX index is down -0.10%, with Shanghai almost flat at -0.07% and Hong Kong's Hang Seng index down -0.26% for Friday.

Nikkei levels to watch

The Nikkei 225 has slumped further away from the 23,000.00 major level, and this week's decline puts Japan's major index on the downside, and traders could seen bee seeing a replay of the bearish action that took the Nikkei into a low of 20,318.00 in late March. Risk aversion is sapping further bullishness, and the 23,000.00 major handle, which constrained prices last December, looks set to hold for now, and a bearish continuation from here to could easily fall to 21,500.00 and hit the 50.0 Fibo retracement level, assuming support from the 200-day SMA at 21,700.00 fails to hold.