Stock markets diverged and the dollar dipped on Friday as traders tracked US President Donald Trump's latest tariff announcement, economic data and earnings.

Wall Street indices were mixed at the end of the session with the S&P 500 near flat.

That came despite data showing that US retail sales fell by a more-than-expected 0.9 percent in January from December.

Analysts pointed out that was due in part to the December figure being revised higher.

The drop was due partly to bad weather that depressed demand, but the result could also show "a little consumer fatigue," said Briefing.com analyst Patrick O'Hare.

Investors largely shrugged at data earlier this week showing an increase in consumer price inflation and higher-than-expected wholesale price inflation.

"The stock market continues to maintain this resilient disposition," said O'Hare, who pointed to strong corporate earnings as an offset to concerns about tariffs and an uptick in inflation.

But a rebound in inflation, or persistent inflation at a high level, would make it difficult for the Federal Reserve to cut rates further.

Markets also continued to follow the latest trade developments.

The European Union on Friday vowed to respond "firmly and immediately" to trade barriers after Trump unveiled tariffs that could hit US allies and competitors.

Trump on Thursday said he had decided to impose reciprocal duties, in a dramatic escalation of an international trade war he has unleashed since taking office in January, but the measures will not go into effect until a study is completed.

Despite rising trade tensions, investor sentiment has largely held up in the hope that many of the tariffs can be rowed back with negotiations, while Trump's announcement of plans to hold Ukraine peace talks with Russian counterpart Vladimir Putin has added some optimism.

"Tariff ambiguity still reigns but markets are currently drawing some comfort from the news" of the delay, said National Australia Bank's head of currencies research and markets, Ray Attrill.

Hong Kong led the way among major stock markets on Friday, closing up more than three percent, as tech firms extended their recent surge on a Bloomberg report that China had invited Alibaba co-founder Jack Ma and other top entrepreneurs to meet Beijing's top brass.

That fueled hopes of fresh support for the private sector.

Alibaba piled on 6.3 percent, while JD.com and Tencent each rose more than seven percent.

European markets ended the day mixed.