Most Asian stocks fell on Friday, tracking Wall Street’s overnight slump as investor uncertainty deepened over U.S. trade policies. This follows President Donald Trump’s postponement of 25% tariffs on most Mexican and Canadian goods just two days after imposing them. Major U.S. stock indices closed sharply lower on Thursday due to President Trump’s fluctuating tariff policies.
On Tuesday, President Trump escalated trade tensions by imposing 25% tariffs on Canadian and Mexican goods and increasing levies on Chinese products to 20%. However, he later softened his stance by delaying 25% tariffs on vehicle imports from Mexico and Canada, offering temporary relief to global markets. On Thursday, Trump announced a temporary exemption for goods imported from Canada and Mexico under the United States-Mexico-Canada Agreement (USMCA), delaying the implementation of a 25% tariff until April 2.
The initial imposition of tariffs unsettled global markets, and the subsequent postponement added to the volatility, leaving investors uncertain about future trade relations and economic policies. Japan’s market plunged 2.1%, while another major index declined 1.2%. Australia’s index fell 1.6%. Hong Kong’s index inched 0.2% lower after jumping 3.2% in the previous session. China’s index edged 0.1% lower, while another lost 0.3%. South Korea’s index was trading 0.4% lower, while India’s edged up 0.2%.
Next week, China’s National People’s Congress will conclude on Tuesday. February and inflation data are scheduled for Sunday, March 9. India’s February data is also due next week. Japan’s fourth-quarter data is scheduled for release on Tuesday. “Fourth quarter GDP is likely to be revised downward slightly from 0.7% quarter on quarter, seasonally adjusted, to 0.5% as capital spending comes in weaker than expected,” ING analysts said in a note.
— news from Investing.com