Asian markets slumped early on Friday, tracking sharp falls in U.S. and European stocks, which took a hit on fears of a potential trade war.
In Tokyo, the Nikkei 225 fell 2.97 percent in the morning and the broader Topix lost 2.43 percent, with its 33 sectors trading lower across the board. The materials and financials sectors were among the biggest losers.
Major exporters were also downbeat, with Toyota falling 2.57 percent and Sony losing 3.02 percent.
Meanwhile, Seoul’s benchmark Kospi index lost 2.09 percent, with broad losses seen in the early going. Technology names fell sharply, with heavyweight Samsung Electronics sinking 2.67 percent.
Steelmakers, however, were mixed, with Posco falling 2.79 percent, but Hyundai Steel and Seah Steel gaining 0.79 percent and 2.69 percent, respectively. South Korea is one of the countries temporarily exempt from recent U.S. steel tariffs.
In Sydney, the S&P/ASX 200 slid 1.68 percent as all sectors traded in the red. Declines were led by the materials subindex, which lost 2.79 percent. Among mining majors, Rio Tinto plunged 4.31 percent and BHP lost 3.6 percent.
Oil producers were also weaker after oil prices slid overnight as markets stateside took a tumble on trade concerns.
U.S. stocks tumbled after President Donald Trump signed a memorandum that would implement tariffs on up to $60 billion in imports from China.
The tariffs largely focus on technology sector goods and were intended to penalize China for, according to the Trump administration, stealing intellectual property.
Trump had signed off on tariffs on steel and aluminum imports earlier this month, although several countries were exempt. Markets are worried that subsequent retaliatory actions from U.S. trading partners could result in a trade war.
In response, China on Friday proposed a list of 128 U.S. products as potential retaliation targets, according to a government statement.
On Thursday, the Dow Jones industrial average plunged 2.93 percent, or 724.42 points, to close at 23,957.89, with other major stock indexes recording losses of more than 2 percent.
European markets also slid in the last session on trade jitters, with the pan-European STOXX falling 1.55 percent and the FTSE 100 declining 1.23 percent.
The dollar extended losses against the safe-haven yen on the back of trade-related fears, with the greenback trading at 105.05 at 8:08 a.m. HK/SIN. The yen touched its highest levels in 16-months earlier.
The dollar index, which tracks the dollar against a basket of six currencies, traded at 89.691.
Of note, the Bank of England held rates steady on Thursday, although two policymakers dissented and voted for an immediate rate hike.
Here’s the economic calendar for what’s coming up on Friday (all times in HK/SIN):
- 1:00 p.m.: Singapore consumer price index
- 4:00 p.m.: Taiwan retail sales
— CNBC’s Kevin Breuninger, Kayla Tausche and Nyshka Chandran contributed to this report.
