TOKYO, Feb 28 — Asian stocks slipped today after cautious comments from US Trade Representative Robert Lighthizer dented some of the recent optimism towards Sino-US trade relations, while the US dollar held gains, supported by higher bond yields.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.1 per cent.

Australian stocks fell 0.1 per cent, South Korea's Kospi shed 0.5 per cent and Japan's Nikkei lost 0.5 per cent.

Global equities scaled a four-month high earlier this week helped by upbeat expectations towards US-China trade talks. Yesterday, however, they dipped after Lighthizer said it was too early to predict an outcome in talks between Washington and Beijing.

"Lighthizer's comments trimmed a bit of the trade resolution hopes which had grown recently, and equities are exposed to some downward pressure,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management.

"As for tensions between India and Pakistan, it is a concern. But it remains a regional topic for the moment and the overall market impact has been limited thus far.”

The conflict between India and Pakistan heated up after both said yesterday that they shot down each other's fighter aircraft.

In currency markets, the US dollar index against a basket of six major currencies stood little changed at 96.085.

The index had edged up 0.1 per cent overnight, when it managed to pull away from a three-week trough as Treasury yields rose ahead of the US fourth-quarter gross domestic report release.

The greenback traded at 110.865 yen, having bounced back from a low of 110.355 brushed momentarily yesterday as tensions between India and Pakistan flared.

The Japanese currency often attracts demand in times of political tensions and market turmoil.

The euro was a shade higher at US$1.1377 after slipping 0.15 per cent overnight.

US crude oil futures were 0.07 per cent higher at US$56.98 (RM231.69), adding to gains from the previous day, when the contracts had surged 2.5 per cent. — Reuters