Japan’s Nikkei down 5.6% as China-U.S. trade war escalates

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Bangkok – Asian stocks sank from the previous day after U.S. stocks gave up many historical gains.

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Deepening concerns over a trade war by U.S. President Donald Trump initially dropped Japan’s Nikkei 225 stake index by 5.6%. By mid-morning Tokyo, it fell 4.7% to 32,969.95.

The yen soared against the US dollar, which also lost the value of the euro. One dollar bought 143.48 yen, down from about 146 yen a day ago. The euro rose from $1.1195 to $1.1305.

Kospi in South Korea fell 1.6% to 2,400.34, while in Australia, the S&P/ASX 200 fell 2.1% to 7,552.10.

Stephen Innes of SPI Asset Management said in a comment that investors are thinking that Trump has decided to delay higher tariffs in most countries than hubs.

He wrote: “That was the market that hit the brakes.

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The S&P 500 fell 3.5% on Thursday, cutting Wednesday’s gains to 9.5% after Trump decided to downgrade many global tariffs. The Dow Jones industrial average fell 1,014 points, or 2.5%, while the Nasdaq Complex fell 4.3%.

But China announced more countermeasures to the United States, clarifying at the White House that the U.S. would tax Chinese imports at a rate of 145%, rather than the 125% tax rate Trump posted on Wednesday’s Truth Social, instead of the 125% import tax announced on Wednesday’s Truth Social, once other announced tariffs were announced. The S&P 500 fell more than 6%.

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Overall, the S&P 500 index fell 188.85 points on Thursday to 5,268.05. The Dow Jones industrial average fell 1,014.79 to 39,593.66, and the Nasdaq composite rate fell 737.66 to 16,387.31.

“Trump winks,” UBS strategist Bhanu Baweja wrote in a report on the president’s decision to tariffs.

Meanwhile, China has been seeking to unite with other countries, apparently hoping to form a unified front with Trump. The world’s second largest economy has also intensified its countermeasures to Trump’s tariffs.

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A spokesman for the China Film Administration said that given that the United States is “inevitably the wrong move by the United States to impose tariffs on China”, Chinese audiences will find that American movies are not very delicious. ”

That comes after Trump and his Treasury Secretary Scott Bessent issued a clear message to other countries after announcing a moratorium on most countries on Wednesday: “Don’t retaliate, you’ll get a reward.”

The EU said on Thursday it would put aside 90-day trade retaliation measures and leave room for a solution.

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Thursday’s swing also hit the bond market, which historically played the role of executors on politicians and economic policies. For example, it helped Liz Truss of the UK in 2022, whose 49 angels her UK position as the shortest Prime Minister.

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Earlier this week, the huge jump in U.S. fiscal yields shocked the market so much that Trump said on Wednesday that he had been watching investors “a bit uneasy.”

There may be several reasons for this a sharp rise in production. Hedge funds may have sold the Treasury to raise cash, and investors outside the U.S. may dump their U.S. government bonds due to the trade war. Regardless of the reason behind it, the higher Treasury Department will put pressure on the stock market and drive mortgages and other loans higher for U.S. households and businesses.

The 10-year treasury yield has calmed down after Trump’s turnaround on tariffs, and soon fell to 4.3% in a report that exceeded inflation on Thursday morning. This is starting to soar to nearly 4.5% from just 4.01% last weekend.

But as Thursday progressed, the 10-year treasury yield climbed again and reached 4.4%. The transaction price was 4.39% earlier on Friday.

In other transactions earlier Friday, U.S. benchmark crude oil lost 37 cents to $59.70 a barrel in electronic trading on the New York Stock Exchange.

International standard Brent crude fell 30 cents to $63.03 a barrel.

– Associated Press business writer Stan Choe contributed.

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