HONG KONG: Investors in Asia shifted nervously on Friday as Donald Trump's much-hyped tax-cut plans hung in the balance after a plan to push them through hit unexpected hurdles.
The Dow surged to new records on Wall Street as several key Republicans backed the controversial reforms, which the president says will fire up the US economy, fuelling hopes they could reach Trump's desk for signing by year's end, reports AFP.
However, a new projection showing the measure would add $1 trillion to the federal deficit, complicating Trump's argument the cuts would pay for themselves, saw three Republican senators -- Bob Corker, Jeff Flake and Ron Johnson -- withdraw their support until changes were made.
Republicans hold a narrow 52-48 Senate majority and three defectors would kill the bill. Global equities have rallied this year on the back of hopes for Trump's market-friendly promises of tax cuts, infrastructure spending and deregulation, but analysts warn of a sharp sell-off if the plans fall flat.
Tokyo ended 0.4 percent higher, back near quarter-century highs after reversing early losses thanks to a weaker yen.
Hong Kong fell 0.4 percent, extending its losing run into a fifth day, while Shanghai was marginally up.
Sydney added 0.3 percent and Singapore rose 0.8 percent while Seoul and Wellington were both flat.
Most energy firms rose but gains were muted after OPEC and Russia agreed to extend a cap on oil output by a further nine months, until the end of next year.
While the limit provided support for oil prices, the news had already been baked in, and there are also worries that they will not be continued into 2019.
"Basically, the markets did not spike because most of what was announced was expected and factored into the prices," Sukrit Vijayakar, founder of energy consultancy Trifecta Consultants, told AFP.
"The new elements, if any, were that Libya and Nigeria would cap production, but since it did not involve any production cuts, that would not provide the market any fillip," he added.