Asian markets slump on US-China trade war worries; Japan’s Nikkei cracks over 5%, Hang Seng set for lower open

Asian markets traded lower on Friday, following overnight sell-off on Wall Street as trade war tensions between US and China escalated and fueled risk-off mood. Japan’s Nikkei share average led the losses in the region with a steel cut of over 5%.

Japan’s Nikkei 225 plunged 5.46%, while the Topix tanked 5.05%. The Nikkei had jumped 9% on Thursday after US President Donald Trump declared an immediate 90-day tariff pause for many countries.

Among stocks, Fast Retailing shares declined 3.87%, Tokyo Electron share price dropped 5% and Advantest stock price plunged 7.5%.

All of the Tokyo Stock Exchange's 33 industry sub-indexes fell, with refiners falling 6.6% to become the worst performer, Reuters reported.

Meanwhile, Japanese Prime Minister Shigeru Ishiba set up a task force to oversee trade negotiations with the United States. The task force will be headed by Economy Minister Ryosei Akazawa, who domestic media said hopes to visit Washington next week.

Other Asian Markets

South Korea’s Kospi declined 1.55% and the Kosdaq dropped 0.11%. Hong Kong’s Hang Seng index futures indicated a lower opening.

Australian shares tanked over 2%. The S&P/ASX 200 index declined as much as 2.4% to 7,524.50. New Zealand's benchmark S&P/NZX 50 index fell 1.5%.

US-China Trade War

US President Donald Trump paused reciprocal tariffs for 90 days for those countries that didn’t retaliate, while increasing tariffs on China. The cumulative tariff rate on China now would be 145%, the White House confirmed.

China has been matching each of Trump's tariff hikes with increases of its own, sparking fears that Beijing could push tariffs beyond the current 84% threshold, Reuters reported.

Meanwhile, overnight on Wall Street, the US stock market slumped, with the three major averages closing sharply lower. The Dow Jones Industrial Average plunged 2.50%, the S&P 500 cracked 3.46%, and the Nasdaq Composite crashed 4.31%.

(With inputs from Reuters)

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