Australian shares are set to open lower on Friday, extending falls for a second straight session, on fears of an impending global recession and China's warning of retaliation against US tariffs.

China on Thursday vowed to counter the latest US tariffs on $300 billion of Chinese goods but called on the United States to meet it halfway on a potential trade deal, as US President Donald Trump said any pact would have to be on America's terms.

The local share price index futures fell 0.4% to 6,351, a 57.1-point discount to the underlying S&P/ASX 200 index close. The benchmark closed 2.9% lower on Thursday.

New Zealand's benchmark S&P/NZX 50 index edged lower to 10,702.83 in early trade.