May 29 (Reuters) - Australian shares fell on Friday as investor concerns about a
standoff between Washington and Beijing over Hong Kong tempered optimism about a re-opening of the world economy, while financial stocks were set to snap a four-day rally.
In the latest dispute between the world's two biggest economies, U.S. President Donald Trump said he will give a news conference on China on Friday, as his administration moves to pressure Beijing over its treatment of Hong Kong. Hong Kong's government warned Washington that withdrawing its special U.S. status could be a "double-edged sword" and urged the United States to stop interfering in its internal affairs. S&P/ASX 200 index .AXJO fell 1.38% to 5,770.2 points by 0115 GMT. The index is set to post its fifth straight weekly gain.
Financial stocks .AXFJ slumped 2.51%, but the index was on track to post its best weekly gain.
Virgin Money (LON:VM) UK PLC VUK.AX shed 8.96%, while Westpac Banking Corp WBC.AX lost 4.51%.
ASX 200 Energy index .AXEJ dropped 1.09%, led by New Hope Corp Ltd NHC.AX , down 8.67%, followed by Whitehaven Coal Ltd WHC.AX that lost 4.29%.
Brent crude LCOc1 futures fell 1.47% to $34.77 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 lost 2.22% to $32.96 per barrel.
Meanwhile, gold stocks .AXGD rose 2.93%, led by Northern Star Resources Ltd NST.AX , up 7.05%, followed by Bellevue Gold Ltd BGL.AX , gaining 5.31%.
The number of issues on the ASX that advanced were 511, while 698 declined as a 0.7-to-1 ratio favoured decliners.
The most heavily traded shares by volume were Southern (NYSE:SO) Cross Media Group Ltd SXL.AX , Tabcorp Holdings Ltd TAH.AX and Incitec Pivot Ltd IPL.AX .
In New Zealand, the benchmark S&P/NZX 50 index .NZ50 fell 0.19% to 10,836.
The top percentage losers in the benchmark .NZ50 were Westpac Banking Corp WBC.NZ down 2.64%, followed by Meridian Energy Ltd MEL.NZ losing 2.45% and Tourism Holdings Ltd THL.NZ dropping 2.31%.