Market Commentary - Foreign Markets
Asian stocks extended losses in thin trade on Friday, with markets in mainland China, Hong Kong and Taiwan closed for Tomb Sweeping Day holiday.
Investor sentiment remained fragile as U.S. President Donald Trump's reciprocal tariffs fueled concerns about inflation and growth.
According to UBS, the latest tariff measures unveiled by Trump may knock down U.S. economic growth by 2 percentage points this year and raise inflation close to 5 percent.
However, Trump has downplayed the impact. The markets are going to boom, the stock is going to boom and the country is going to boom, Trump said.
As growth worries mount, there is now increased speculation that the Federal Reserve could accelerate interest rates to make it easier for U.S. companies and households to borrow and spend.
Investors await the monthly U.S. jobs report as well as remarks by Federal Reserve Chair Jerome Powell later in day for further direction.
The dollar weakened to a six-month low and gold edged down from recent record highs while crude oil prices fell below $70 a barrel on demand concerns and after a larger-than-expected production increase by OPEC and its allies.
Japanese markets tumbled to hit an eight-month low as lower bond yields weighed on banks and exporters were hit by a stronger yen.
The Nikkei average fell 2.75 percent to 33,780.58 while the broader Topix index settled 3.37 percent lower at 2,482.06.
Honda Motor, Toyota, Sony, Mitsubishi UFJ Financial, Mizuho Financial plunged 4-11 percent. Tech stocks also faced selling pressure, with SoftBank Group and Advantest tumbling 7-8 percent.
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