BANGKOK (AP) — Stock markets in Europe and Asia faced a tough day on Friday. Major indexes in Japan, Hong Kong, and South Korea each fell more than 2%. Investors were rattled by President Trump’s announcement of hefty tariffs on imports from Canada, Mexico, and an increase on Chinese goods.
In Europe, Germany’s DAX index dropped 0.4% to 22,458.23. The CAC 40 in Paris also fell by 0.4%, closing at 8,073.90. Meanwhile, Britain’s FTSE 100 dipped slightly, down 0.1% to 8,751.32.
On the upside, U.S. futures showed some signs of recovery, with both the S&P 500 and Dow Jones Industrial Average up 0.3% in pre-market trading.
In Asia, Tokyo’s Nikkei 225 index took a hit, losing 2.9% and closing at 37,155.50. This decline was largely attributed to significant losses in the tech sector, where companies like Advantest and Disco Corp. saw their stock prices drop sharply.
Hong Kong’s Hang Seng index fell by 3.3% to 22,941.32, while the Shanghai Composite index decreased by 2%, settling at 3,320.90.
Trump confirmed that tariffs on imports from Canada and Mexico would take effect as planned. His administration also faced pushback from China, which criticized the 10% tariff increase as a violation of trade rules. China’s Commerce Ministry warned that this would burden American businesses and disrupt global supply chains.
South Korea’s Kospi slid by 3.4%, ending at 2,532.78, and in Australia, the S&P/ASX 200 dropped 1.2% to 8,172.40. Thursday’s trading wasn’t any better for U.S. markets, as the S&P 500 fell 1.6%, the Dow lost 0.4%, and the Nasdaq tumbled 2.8%. The S&P 500 has seen a decline in five of the last six trading sessions after hitting a record high just last week.
Concerns about the economy have been growing, especially as tariffs could fuel inflation and lead to job losses in the public sector. Recently, Nvidia, a star performer on Wall Street, saw its stock drop by 8.5% despite a positive earnings report. This was significant as Nvidia has been at the forefront of the AI technology boom, but market jitters remain high.
As anxiety over the economy rises among U.S. consumers, it places additional pressure on the Federal Reserve, which is facing a challenging environment of slowing growth and rising inflation.
Despite the turmoil, the fundamentals of the U.S. economy remain steady. The government stuck with its growth estimate for the last quarter of 2024, but noted an uptick in expected inflation.
In a separate report, applications for unemployment benefits in the U.S. edged up last week, reaching a three-month high. However, the numbers remain low compared to past recessions.
In energy markets, U.S. benchmark crude oil fell by 70 cents to $69.65 per barrel as trading progressed on the New York Mercantile Exchange. Brent crude, the global standard, dropped by 66 cents to $72.91 per barrel. The U.S. dollar strengthened against the Japanese yen and slightly gained against the euro.
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