New Zealand shares fell on Friday as most Asian indexes ended their rally caused by the US-China trade truce earlier this week.

The S&P/NZX 50 Index fell 0.73% or 94.03 points to close at 12,786.79.

"The markets confront a weekend with less risk of carrying open positions than last, with no major trade talks or significant risks on the calendar," said Kyle Rodda, senior analyst at Capital.com, as quoted by Reuters.

Closer to home, New Zealand has decided to allocate higher budget funds to give rebates to foreign studios for making movies in the country as a response to Trump imposing 100% tariffs on films made outside the US, Reuters said in a separate report.

"We are sending a clear message to the world: New Zealand is the best place in the world to make movies. Bring your productions here to take advantage of our talent and locations," said Finance Minister Nicola Willis, as quoted by Reuters.

In domestic news, New Zealand's manufacturing sector expanded for a fourth month in a row in April as new orders returned to growth, according to a Friday report by BusinessNZ. The BusinessNZ Performance of Manufacturing Index rose to 53.9 in April from 53.2 in March.

In corporate news, Fletcher Building (ASX:FBU, NZE:FBU) said Gareth O'Reilly, chief executive of its Australian division, will step down as the company conducts a broader strategic restructuring.

Investore Property (NZE:IPL) reported Friday that it returned to profit in the fiscal year ended March 31 with earnings of NZ$0.1024 per diluted share, compared with a loss of NZ$0.1817 per diluted share a year earlier.