In economic news, German consumer inflation grew an annual 1.7 percent in July, slightly faster than the 1.6 percent increase registered in June, final data from Destatis showed.
Trump was responding to North Korea's claim it was completing plans to fire four intermediate-range missiles over Japan to land near the U.S. Pacific territory of Guam.
Investors welcomed new data showing that USA inflation at the consumer level inched higher last month, suggesting that the Federal Reserve may be less likely to raise interest rates next month.
The broad-based S&P 500 shed 0.6 percent to 2,459.50, while the tech-rich Nasdaq Composite Index tumbled 0.8 percent to 6,299.12. Hong Kong's Hang Seng Index plunged by 2 percent, while South Korea's Kospi Index slumped by 1.7 percent.
In overseas trading, stock markets across the Asia-Pacific region saw continued weakness during trading on Friday.
In Europe, equities dived with London losing 0.6 percent, while Frankfurt shed 1.1 percent and Paris fell 1.4 percent.
The dollar was further weighed Friday by the soft USA inflation data.
The Labor Department said its consumer price index inched up by 0.1% in July after coming in unchanged in June.
Plus, Macy's spiking call volume; Hertz's big day; and a continued slide from TRIP stock.
Minneapolis Fed President Neel Kashkari, who has advocated for the Fed to halt interest rate hikes until inflation picks up gain, on Friday said his colleagues are telling each other "a ghost story (http://www.marketwatch.com/story/feds-kashkari-says-central-banks-hawks-are-spooked-by-ghost-story-of-higher-wages-2017-08-11)" about higher wage inflation that scared them into raising short-term rates. It also raised its outlook.
The Straits Times Index sank 1.31 per cent or 43.52 points to 3,279.72, down 1.4 per cent for the week.
Nvidia's quarterly revenue in its data center and automotive businesses missed estimates, dragging the chipmaker's shares down 3.90 percent. The company also said sales at its established stores declined for the fourth-straight quarter. Brent crude, used to price worldwide oils, was down 17 cents to $51.73 a barrel in London. The yield on the 10-year Treasury note slipped to 2.19 percent from 2.20 percent late Thursday.
The major index futures are now pointing to a modestly higher open for the markets, with the Dow futures up by 21 points. Germany's DAX was up 0.1%, while France's CAC 40 fell 1.1%.
On the currency front, the USA dollar is trading at 108.82 yen compared to the 109.20 yen it fetched at the close of NY trading on Thursday. Britain's FTSE 100 was down 1%. In Australia, the S&P/ASX 200 was down 1.13%.
The yen tends to benefit during times of geopolitical or financial stress as Japan is the world's biggest creditor nation and there is an assumption that Japanese investors will repatriate funds should a crisis materialize.