Shanghai, China – Markets in the Asia-Pacific region showed a decline on Friday, following a sell-off on Wall Street triggered by escalating trade tensions between the United States and China. The news of President Donald Trump’s decision to temporarily halt new reciprocal tariff rates on imports from most countries for 90 days added to the uncertainty surrounding global trade.
In Australia, the S&P/ASX 200 fell 2.28%, while Japan’s Nikkei 225 and Topix both experienced significant losses of 5.46% and 5.05% respectively. South Korea’s Kospi dropped by 1.55% and the small-cap Kosdaq declined by 0.11%. Hong Kong’s Hang Seng index futures also showed a slight decrease, indicating a cautious market sentiment.
Analysts at ANZ expressed skepticism about the outcome of trade negotiations, stating that continued uncertainty could weigh on investment and impact the growth outlook. The White House confirmed that the cumulative tariff rate on Chinese goods could potentially reach 145%, following the implementation of a new 125% duty on top of the existing 20% duty related to the fentanyl crisis.
Despite the uncertainties in the market, U.S. stock futures rose as investors sought to navigate a volatile week. The major averages in the U.S., including the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average, closed lower, erasing gains made in the previous session. The S&P 500 dropped by 3.46%, the Nasdaq Composite slid by 4.31%, and the Dow Jones Industrial Average fell by 2.5%.
Investors are closely monitoring the developments in the trade war between the U.S. and China, as well as the potential impact on global markets. The fluctuating market trends indicate a level of uncertainty that could persist in the coming days as both countries continue to negotiate trade terms.