Asia-Pacific markets fell Friday, after Wall Street resumed sell-off overnight as trade war tensions between the world’s two largest economies fueled risk-off mood.
Australia’s S&P/ASX 200 fell 2.28%.
Japan’s Nikkei 225 lost 5.46%, while the Topix traded 5.05% lower. South Korea’s Kospi fell 1.55% and the small-cap Kosdaq declined 0.11%.
Hong Kong’s Hang Seng Index was down 0.8% while China’s CSI 300 dipped 0.13%.
U.S. President Donald Trump announced a tariff U-turn Wednesday, dropping the new reciprocal tariff rates on imports from most countries for 90 days.
“The extension of time does not alleviate uncertainty,” ANZ analysts wrote in a note. “There is skepticism about the outcome of trade negotiations, and that will continue to weigh on investment and thus the growth outlook.”
Additionally, the cumulative tariff rate on China now would be 145%, the White House confirmed to CNBC on Thursday. The figure consists of the new 125% duty on goods, on top of the 20% duty linked to the fentanyl crisis.
U.S. stock futures moved higher as investors look to close out a volatile week, punctuated by sharp swings for the major averages. S&P 500 futures added 0.3%, while Nasdaq 100 futures climbed roughly 0.1%. Futures tied to the Dow Jones Industrial Average ticked higher by 28 points, or nearly 0.1%.
Overnight in the U.S., the three major averages closed lower, giving back some of the gains from the historic rally seen in the previous session after President Donald Trump announced a 90-day reprieve on some of his “reciprocal” tariffs.
The S&P 500 sold off 3.46% and closed at 5,268.05, while the Nasdaq Composite slid 4.31% to end at 16,387.31. The Dow Jones Industrial Average dropped 1,014.79 points, or 2.5%, settling at 39,593.66.
