Asian shares were mostly lower on Friday, following a sell-off on Wall Street, as investors remain anxious about the ongoing uncertainty surrounding tariffs and await the release of the U.S. jobs report.
U.S. futures were higher, and oil prices saw little change, while Bitcoin hovered near $88,000 following President Donald Trump’s signing of an executive order to create a government reserve of Bitcoin, which could signal further mainstream acceptance of the cryptocurrency.
China’s trade data for January and February showed weaker-than-expected results, with exports growing only 2.3% and imports plummeting 8.4%. These figures, typically combined to adjust for distortions from the Lunar New Year holidays, have raised concerns over China’s economic performance.
Meanwhile, U.S. stocks fell after Trump offered another temporary reprieve from his 25% tariffs on goods imported from Mexico and Canada. This reprieve underscored the ongoing uncertainty that Trump’s tariffs have caused for the global economy. Although the previous day’s exemption for automakers briefly boosted stocks, investors showed less enthusiasm for this latest move.
In Tokyo, the Nikkei 225 dropped 2.1% to 36,898.25, led by significant losses in technology stocks. Computer chip-maker Tokyo Electron saw a 3.6% drop, while testing equipment maker Advantest fell 2.3%. Both companies experienced steep declines in their U.S.-listed shares overnight.
Other Asian markets had mixed results: Hong Kong’s Hang Seng rose by 0.6%, the Shanghai Composite was nearly unchanged, and Australia’s S&P/ASX 200 tumbled 1.8%. South Korea’s Kospi edged down by 0.1%, and Taiwan’s Taiex fell by 0.7%. India’s Sensex also dropped by 0.7%, while Thailand’s SET index gained 0.7%.
On Wall Street, the S&P 500 dropped 1.8%, resuming its downward trend after a brief recovery. The Dow Jones Industrial Average fell 1%, and the Nasdaq Composite lost 2.6%, ending more than 10% below its December record. Investors have speculated that Trump’s tariffs could be a temporary negotiating tactic rather than a permanent policy. However, the ongoing uncertainty and the potential for further tariffs scheduled for April 2 have left U.S. businesses facing significant challenges, with many reporting confusion and chaos due to the unpredictable nature of the policy.
Investors are also anticipating the release of the U.S. Labor Department’s jobs report later today, with economists expecting an acceleration in hiring for February. A solid job market and robust household spending have helped stave off a recession, but recent signals from major retailers like Macy’s suggest concerns about consumer spending in the future.
In other market news, semiconductor companies, which had surged due to the AI boom, led losses. Nvidia fell by 5.7%, and Broadcom dropped 6.3% ahead of its earnings report. In Europe, stocks were mixed following the European Central Bank’s widely anticipated interest rate cut.
Oil prices showed little change, with U.S. benchmark crude dropping by 4 cents to $66.32 per barrel and Brent crude losing 1 cent to $69.45 per barrel. The U.S. dollar fell slightly against the Japanese yen, while the euro saw a small increase.
As markets continue to react to the evolving economic landscape, all eyes are now on the U.S. jobs report, which could provide further insights into the state of the economy and its potential direction.
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