Bloomberg News said Robert Mueller, the special prosecutor looking into claims Trump’s campaign worked with Moscow to sway the presidential election, would look into past transactions involving the tycoon’s firms and Russians in the past.
“Just last week President Trump said expanding the investigation beyond Russia would be out of bounds so with Mueller broadening the Inquisition into Trump’s business dealings, US political risk could move to whole new level as this foxtrot plays out,” said Stephen Innes, senior trader at OANDA.
Most Asian equity markets slipped into the red on Friday, with profit-taking also acting as a drag after a healthy July so far.
Tokyo was down 0.3 percent by the break, Hong Kong slipped 0.1 percent by the break after a nine-day rally, while Shanghai slipped 0.2 percent.
Sydney eased 0.8 percent, Seoul was flat and Taipei shed 0.5 percent, while Manila and Jakarta also retreated.
But while the investigation continues to drag on market sentiment, upbeat earnings and a positive global economic outlook have kept investors broadly upbeat, with all three main New York indexes sitting around record highs.