Markets in Japan and South Korea opened lower on Friday, while other major markets in Asia remained closed for a public holiday.
In Japan, the benchmark Nikkei 225 was down 0.38 percent in early trade, while the Topix slid 0.62 percent. Across the Korean Strait, the Kospi was down 0.45 percent.
The session in Asia follows a lower finish on Wall Street, after U.S. military forces dropped the largest non-nuclear bomb in Afghanistan on Thursday.
This is the first time the GBU-43 bomb, known as the “mother of all bombs,” has ever been used in combat, according to Adam Stump, the Pentagon spokesman. The bomb contains 11 tons of explosives and is formally known as the Massive Ordnance Air Blast bomb.
The dollar index, which measures the U.S. dollar against a basket of currencies, traded at 100.58, climbing from an earlier low of 100.01.
“The U.S. dollar took its cue from yields, weaving in and out of negative territory,” Kathy Lien, managing director of foreign exchange strategy at BK Asset Management, said in a note. But, Lien said, geopolitical risks remain front and center, following the bombing in Afghanistan.
“President Trump has been flexing his muscles, which makes investors nervous. The situation in North Korea is still uncertain but after Syria and ISIS, North Korea could be Trump’s next target,” she said.
Among other currency majors, the yen relatively weakened to 109.09 against the greenback, after dropping below 108.90 in the previous session. But the Japanese currency remained stronger than levels above 110.7 reached against the dollar earlier in the week.
Major export stocks in Japan struggled for gains. Toyota shares were down 0.89 percent, Honda fell 1.37 percent, Mitsubishi Electric down 0.6 percent and Sony was off by 0.75 percent.
Meanwhile, the Australian dollar fetched $0.7561 and the euro traded at $1.0615.
Oil prices finished modestly in the Thursday session even as U.S. oil rig count rose to its highest level in two years and threatened the re-balancing of markets, according to Reuters. Energy services firm Baker Hughes said drillers added 11 oil rigs in the week to April 13, bringing the total count up to 683, said Reuters.
Global benchmark Brent was up 3 cents to $55.89 a barrel in the previous session, while U.S. crude was up 7 cents at $53.18.
— CNBC’s Rachel Cao contributed to this report.