Asia-Pacific Markets React to Trade War Fears

Asia-Pacific markets experienced significant losses on Friday, with Japan's Nikkei 225 leading the downturn by plunging as much as 4.21%. This marks the steepest drop the index has seen in months, as global markets reel from President Donald Trump's announcement of new US tariffs.

Wall Street's Influence and Global Recession Concerns

The sharp decline in Asian markets mirrors Wall Street's worst session in five years, further exacerbated by Trump's decision to impose reciprocal tariffs on over 180 countries. This move has sparked fears of an impending trade war, potentially pushing the global economy into a recession.

Regional Market Performances

Australia's S&P/ASX 200 was not spared, losing 2.44%, while South Korea's Kospi Composite fell by 1.80%. The Nikkei 225 saw a simultaneous drop of 3.54%, hitting an intraday low of 33,259. Meanwhile, markets in Hong Kong and China remained closed for the Qingming Festival.

Currency Market Reactions

In the currency markets, the dollar weakened against the yen, trading 0.45% lower at ¥145.3795 by 7:20 am CET, reflecting the broader market unease.