Asian markets wavered on Friday, after U.S. stocks were dented overnight by a report that the special counsel investigation into Trump and his campaign was intensifying.
Australia's ASX 200 ended down 0.25 percent, or 14.523 points, at 5720.60, weighed by the heavily-weighted financial subindex dropping 1.07 percent.
Commonwealth Bank shares dropped 3.87 percent.
The Australian government's financial intelligence and regulatory agency on Thursday alleged the bank breached money laundering laws by allowing its Intelligent Deposit Machines to accept thousands of large cash deposits without monitoring user identities, even when deposits exceeded 10,000 Australian dollars, the threshold for reporting the transaction to regulators.
The complaint said there may have been more than 50,000 breaches of the money-laundering regulations.
In a statement, CBA, Australia's largest bank, said it was reviewing the claim and would file a statement of defense.
Brian Johnson, an Australia banking analyst at CLSA, told CNBC's "Street Signs" on Friday that he was negative on CBA's stock, adding the news may spur further scrutiny of the entire sector.
"CommBank trades at a significant premium to the other banks because its so profitable. And the way you make excess profit is obviously to do things slightly differently to the other banks. Perhaps this is part of that kind of ethos in the organization," he said.
Japan's Nikkei 225 ended down 0.38 percent, or 76.93 points, at 19,952.33, while the Topix index shed 0.15 percent, or 2.37 points, to 1631.45. Across the Korean Strait, the Kospi ended up 0.36 percent, or 8.60 points, at 2395.45 after wavering between positive and negative during the session.
In Hong Kong, the Hang Seng Index nudged up 0.04 percent by 3:27 p.m. HK/SIN. On the mainland, the Shanghai Composite lost 0.35 percent, or 11.61 points, to 3261.32, and the Shenzhen Composite shed 0.57 percent, or 10.72 points, to close at 1858.49.
The Wall Street Journal reported Thursday that Robert Mueller, the special counsel overseeing the investigation into possible Trump campaign collusion with Russia, has impaneled a grand jury in Washington, which, the newspaper reported, means the probe is intensifying and could stretch "for months."
Analysts said that while the news was not particularly a "great surprise," its emergence saw both the dollar and Treasury yields fall back a touch ahead of the U.S. market close.
"While a grand jury is perhaps expected given the serious allegations, and it doesn't necessarily mean that criminal charges will be filed, it does make investors wonder where the investigation could go and deepen fears of political chaos," Mizuho said in a note on Friday.
The dollar index, which measures the greenback against a basket of currencies, traded at 92.752 at 3:29 p.m. HK/SIN — declining from levels above 93.200 earlier in the week.