The Canadian dollar declined against its most major counterparts in the Asian session on Thursday, as most Asian shares fell amid worries that tensions between the U.S. and China over Hong Kong may dampen the prospects for an interim trade deal.

Overnight, U.S. President Donald Trump signed into law congressional legislation backing pro-democracy protesters in Hong Kong, despite strong objections by China.

China reiterated its retaliation threat and said the Hong Kong Human Rights Democracy Act seriously interferes in the internal affairs of China violating international laws and basic principles of foreign relations.

We urge the U.S. to not continue going down the wrong path, or China will take countermeasures, and the U.S. must bear all consequences," the Chinese Foreign Ministry said in a statement.

Oil extended losses after a report showed U.S. crude inventories grew unexpectedly last week.

The loonie edged down to 82.29 against the yen and held steady thereafter. At Wednesday's close, the pair was quoted at 82.45.

Data from the Ministry of Economy, Trade and Industry showed that retail sales in Japan plunged a seasonally adjusted 14.4 percent on month in October.

That missed expectations for a decline of 10.4 percent following the 7.2 percent increase in September.

The loonie slipped to a 2-day low of 1.3293 against the greenback from Wednesday's closing value of 1.3281. The currency is likely to find support around the 1.35 level.

The loonie that ended Wednesday's trading at 1.4608 against the euro weakened to a 2-day low of 1.4633. If the currency falls further, 1.49 is possibly seen as its next support level.

In contrast, the loonie held steady against the aussie, after having climbed to a 9-day high of 0.8981 at 6:15 pm ET. The pair had closed Wednesday's deals at 0.8999.

Data from the Australian Bureau of Statistics showed that private capital expenditure in Australia fell a seasonally adjusted 0.2 percent on quarter in the third quarter of 2019 - worth A$29.413 billion.

That missed expectations for a flat reading following the 0.6 percent drop in the three months prior.

Looking ahead, Eurozone economic sentiment index for November is due out in the European session.

At 8:00 am ET, German preliminary inflation data for November will be released.

U.S. stock markets are closed for Thanksgiving holiday.

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