"US-China tensions are the variable which will continue to haunt investors worldwide," Saurabh Jain, assistant vice-president research, SMC Global Securities, said.
"Not much good can happen on the trade front between these two countries, with Trump unlikely to back down on his tariffs."
However, expectations of an interest rate cut by the US Federal Reserve limited losses in the broader market. MSCI's broadest index of Asia-Pacific shares outside Japan inched 0.05% lower.
Meanwhile, India and the United States will resume trade talks on Friday, with little sign of a compromise on a series of protectionist measures taken by both governments in recent months.
The country's IT index was trading up as much 0.52%, with shares of IT services firm Infosys Ltd ticking up as much as 0.8% ahead of its first-quarter results due later in the day.
Shares of InterGlobe Aviation Ltd was trading up as much as 2.55%, reversing losses seen in the last two sessions after one of the co-founders of India`s largest airline IndiGo alleged a violation of corporate governance rules at the parent group.
Shares of KPR Mill Ltd fell as much as 6.21% - its lowest since April 15. The textile manufacturer on Thursday became the first company to withdraw a buyback proposal after the government in the Union budget last week imposed an additional 20% tax on buybacks by listed companies.
The NSE Nifty was 0.05% higher at 11,587.45 as 0353 GMT, while the BSE Sensex was up 0.03% at 38,836.33.