Asia markets set for lower open as banking and trade fears take hold

Markets in the Asia-Pacific region opened weaker on Friday, following losses on Wall Street amid growing concerns over the banking sector and trade tensions.

Regional banks and investment bank Jefferies saw their shares tumble on Thursday in the U.S. as fears of bad loans surfaced.

Taiwan Semiconductor Manufacturing Co. experienced a 2% decline in its shares on Friday after reporting better-than-expected third-quarter earnings after the market closed in Taiwan on Thursday.

Japan’s Nikkei 225 lost 0.43% in early trading, while the Topix index fell 0.33%.

South Korea’s markets, however, showed resilience with the Kospi index rising by 0.56% and the Kosdaq climbing 0.44%.

Australia’s S&P/ASX 200 was down by 0.61%.

Hong Kong’s Hang Seng Index futures were trading lower at 25,862, below the index’s previous close of 25,888.51.

Singapore’s non-oil domestic exports rebounded sharply in September, increasing by 6.9% year-on-year, defying expectations of a 2.1% decline after an 11.3% drop in August.

In the U.S., stock futures were slightly lower on Thursday night following a sell-off driven by concerns about regional banks’ lending practices.

The Dow Jones Industrial Average closed 301.07 points lower, or nearly 0.7%, at 45,952.24. The S&P 500 ended 0.6% lower at 6,629.07, while the Nasdaq Composite fell 0.5% to settle at 22,562.54.

— CNBC’s Liz Napolitano, Pia Singh, and Alex Harring contributed to this report.