Markets limped into the weekend as investors consolidated gains fed by the China-US trade war hiatus, having enjoyed one of their best weeks since Donald Trump unloaded his "Liberation Day" tariff bazooka last month.

The dollar edged down after data showed US wholesale prices rose less than expected last month and retail sales were flat -- following below-forecast consumer inflation figures -- providing hope the Federal Reserve could cut interest rates this year.

Oil prices inched up, though they remain subdued after sinking Thursday on hopes for a breakthrough in Iran nuclear talks after Trump said progress had been made on a deal.

Investors are now awaiting signals from the US president on the progress of talks with his country's trading partners as governments line up to strike deals to avoid his steep levies.

However, analysts warn that the euphoria over Beijing and Washington's detente -- which saw them slash tit-for-tat tariffs for 90 days to allow for talks -- has likely given way to the fact that levies are still elevated and pose a threat to economic growth.

"Even if more trade deals are announced, it is still the case that tariffs on goods entering the US will be much higher than anyone dared to contemplate," said IG chief market analyst Chris Beauchamp.

"This should result in a not insignificant hit to earnings, though the impact will only start to become clear in future earnings reports.

"The question for all investors is, have markets already priced in enough bad news following their big losses in the first half of April to avoid further falls later in the year?"

The head of US retail titan Walmart highlighted the threat to consumers as he warned of price increases caused by Trump's tariffs on imports from around the world.

CEO Doug McMillon welcomed the dialling down of tensions with China but said the levies remained too high for his firm to absorb.

"We will do our best to keep our prices as low as possible but given the magnitude of the tariffs, even at the reduced levels, we aren't able to absorb all the pressure," he told analysts after reporting a solid quarter of earnings.

Asian markets dropped in morning trade.

Tokyo retreated after the release of figures showing Japan's economy saw its first quarterly contraction for a year from January to March.

Hong Kong also fell, with e-commerce titan Alibaba shedding more than four percent after reporting a disappointing rise in first-quarter revenue as Chinese consumer spending remained sluggish. Other tech firms were also lower, with e-commerce rival JD.com down along with Tencent and Meituan.

Shanghai, Singapore, Wellington and Manila were all lower but Sydney, Seoul and Taipei rose.

Tokyo - Nikkei 225: DOWN 0.5 percent at 37,572.88

Hong Kong - Hang Seng Index: DOWN 0.6 percent at 2,3303.08

Shanghai - Composite: DOWN 0.3 percent at 3,370.03

Euro/dollar: UP at $1.1203 from $1.1185 on Thursday

Pound/dollar: UP at $1.3314 from $1.3304

Dollar/yen: DOWN at 145.20 yen from 145.65 yen

Euro/pound: UP at 84.14 from 84.07 pence

West Texas Intermediate: UP 0.1 percent at $61.65 per barrel

Brent North Sea Crude: UP 0.1 percent at $64.56 per barrel

New York - Dow: UP 0.7 percent at 42,322.75 (close)

London - FTSE 100: UP 0.6 percent at 8,633.75 (close)