Asian markets looked set to slump on Friday, tracking sharp falls in U.S. and European stocks, which took a hit on fears of a potential trade war.
U.S. stocks tumbled after President Donald Trump signed an executive 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.
The Dow Jones industrial average plunged 2.93 percent, or 724.42 points, to close at 23,957.89, the S&P 500 dropped 2.52 percent to end at 2,643.69 and the Nasdaq composite fell 2.43 percent to close at 7,166.68.
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.
Over in Asia, futures implied a sharply lower open for Japanese equities following the sell-off stateside, with Nikkei futures traded in Chicago down 3.8 percent at 20,770 compared to the benchmark’s last close.
In Sydney, the S&P/ASX 200 slid 1.71 percent in early trade as all sectors traded in the red. Declines were led by the materials subindex, which lost 3.12 percent.
The dollar extended losses against the safe-haven yen on the back of trade-related fears, with the greenback trading at 104.70 at 6:50 a.m. HK/SIN.
The dollar index, which tracks the dollar against a basket of six currencies, edged up to 89.857 by the end of Thursday.
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 and Kayla Tausche contributed to this report.
