Australian shares .axjo were down 1.3 percent, set for a weekly loss of 0.6 percent and Chinese and Hong Kong bluechips lost 1.6 percent .csi300 and 1.9 percent .hsi respectively.
The Dow and S&P 500 inched higher on the day but they both posted their largest weekly percentage drops since late March.
With the tense mood pushing European shares down for a third day [EU] and Wall Street set to fall again [.N], global stocks .world were on course for their worst week since Donald Trump won November's US presidential election.
The Nasdaq Composite was up 38.25 points, or 0.62 percent, at 6,255.12. Yesterday, the TICK opened at around 900-a reading of 1,000 or more means pretty severe selling pressure-and then headed higher throughout the day.
However, an Associated Press report that the US and North Korea have been engaged in back channel talks (https://apnews.com/686ac7c761694b28b67793a1d8297145?link=mktw) for several months even as they exchange incendiary threats helped to soothe some of the jitters.
The dollar was further weighed on Friday by the soft US inflation data.
Global markets tumbled Wednesday as the US and North Korea ratcheted up their confrontational rhetoric, with the nuclear-armed North rolling out a plan to launch missiles towards the US Pacific territory of Guam.
Nervous investors drove shares lower earlier in the week, after President Trump declared Tuesday that the US would react with "fire and fury" to further nuclear provocations from North Korea.
SeaWorld Entertainment slid 6.2 percent after the theme park operator reported second-quarter revenue that fell short of Wall Street's expectations.
How locals fared in the second round of the PGA Championship
"Probably the pressure had something to do with it, being in the last group in a major tournament", said Matsuyama. Golf has always been about minimizing the mistakes more than rounds of 59 or 63 (his third-round tally at the U.S.
"You'd need to see something more tangible than just rhetoric for a broader pullback", said Richard Steinberg, managing director at HSW Advisors, a finance team within HighTower Advisors, in NY.
"We would now be careful with a whiff of risk aversion in the air and, by extension, also stay away from shorts in the rates market", RBC's global macro strategist Peter Schaffrik said.
The 30-year bond last rose 5/32 in price to yield 2.8107 percent, from 2.818 percent late on Wednesday.
Looking at currency movements during the Asian session, the yen continued strengthening against the dollar, with the pair trading below the 110 level at 109.96 ahead of European trading.
Benchmark 10-year notes last rose 7/32 in price to yield 2.1888 percent, from 2.211 percent late on Thursday. Britain's FTSE 100 sank 1.3 percent.
INFLATION: The Labor Department said consumer prices edged up 0.1 percent in July following no gain in June.
Possibly due to the lack of appetite for risk in the market, the euro suffered on Thursday, down slightly against the dollar by 0.09% at 1.1749, slipping towards a two week low.
Amid the hot rhetoric, US stocks sold off sharply on Thursday, with the S&P 500 falling more than 1 percent.
The Canadian dollar was trading at an average price of 78.67 cents US, down 0.04 of a USA cent. September-dated crude futures settled up 0.8%, or 39 cents, at $49.56 per barrel.