Asian shares took a major hit on Friday after Wall Street's big gains from the day before were wiped out by renewed fears over President Donald Trump's escalating trade war with China.
Japan's Nikkei 225 fell as much as 5.6%, while markets in South Korea, Australia, and China also dropped. Only Taiwan saw a boost, as investors bet it could benefit from supply chain shifts away from China.
The US dollar weakened against major currencies, with the yen surging and the euro also rising, as investors looked for safer options.
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The fresh wave of market jitters came after China announced more tariffs in response to the US confirming it would impose a combined 145% tax on Chinese imports—higher than the 125% figure Trump initially shared on social media.
Wall Street reacted swiftly, with the S&P 500 dropping 3.5%, the Dow falling 2.5%, and the Nasdaq tumbling 4.3%.
Even big US entertainment companies got hit. Warner Bros. Discovery shares fell over 12% after China said it would cut down on imported US films.
Disney stock also sank by nearly 7%. A Chinese film official said American films would become less appealing due to the US's "wrong move" of imposing aggressive tariffs.
Although Trump announced a 90-day pause on tariffs for most countries, global markets aren't buying it.
Analysts say it looks more like a tactic than a genuine change in policy. As Stephen Innes of SPI Asset Management put it, "The party's over, and Asia's feeling the hangover."
In Europe, the EU is holding off on retaliation for 90 days, hoping for a peaceful resolution.
Meanwhile, US bond markets also saw wild swings, with 10-year Treasury yields rising again after briefly calming on news of lower inflation. Higher yields are making life tougher for borrowers and weighing down the stock market further.
Oil prices slipped slightly, with US crude trading at $59.70 a barrel and Brent crude at $63.03.
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