Asian markets experienced mixed trading on Friday, with Japan’s Nikkei 225 falling nearly 3% amid escalating trade war tensions between the U.S. and China. The sell-off in Wall Street on the previous night, driven by concerns over the ongoing trade conflict, affected market sentiment across the region. Japan’s major indices, including the Topix, saw significant losses, with the Nikkei closing at 33,585.58, down 2.96%, while South Korea’s Kospi also fell by 0.5%. In contrast, Hong Kong’s Hang Seng Index and China’s CSI 300 made slight gains, reflecting regional differences in investor sentiment.
The U.S.-China trade dispute continued to weigh heavily on global markets, as U.S. President Donald Trump introduced new tariffs earlier in the week. Although he temporarily suspended some tariffs for 90 days, market analysts remain skeptical about the future of trade negotiations. The prolonged uncertainty is expected to impact investment decisions and economic growth projections, according to ANZ analysts. This has created a climate of caution among investors, particularly in Asia.
As the trade tensions escalate, the U.S. has confirmed that the cumulative tariff rate on China now stands at a steep 145%, due to additional duties imposed on Chinese goods. U.S. stock markets also reacted negatively, with the S&P 500 and Nasdaq suffering notable losses in the wake of Trump’s tariff announcements. Despite brief periods of optimism, the market remains volatile, with uncertainty about the effectiveness of the tariffs and their long-term impact on global trade.
In retaliation, China has raised its tariffs on U.S. goods to 125%, up from the previous 84%. The Chinese government has expressed defiance, suggesting that further U.S. tariff hikes will not be effective and may ultimately harm the global economy. As the trade war continues to unfold, both sides remain entrenched in their positions, signaling further instability for global financial markets.
Source: CNBC