A U.S. flag hangs outside the New York Stock Exchange in New York on Monday, February 24, 2025. (AP Photo/Seth Wenig)
Asian stock markets fell on Friday as investors navigated uncertainties surrounding U.S. tariffs and awaited a crucial jobs report. Tokyo’s Nikkei 225 saw a sharp drop of over 2%, following a sell-off on Wall Street. Meanwhile, U.S. futures edged higher, and oil prices remained steady.
Crypto Market Sees Big Move
Bitcoin hovered near $88,000 after President Donald Trump signed an executive order to establish a government reserve of the cryptocurrency. This move is seen as a significant step toward Bitcoin’s mainstream acceptance.
China’s Trade Struggles Continue
China’s latest trade data painted a bleak picture, with exports growing by just 2.3% and imports plummeting by 8.4% in the first two months of the year. The numbers, which combine January and February data to account for Lunar New Year disruptions, highlight ongoing economic challenges.
U.S. Tariff Policies Keep Investors on Edge
President Trump granted a temporary reprieve from his 25% tariffs on goods imported from Mexico and Canada. While this eased some concerns, market enthusiasm remained subdued. Investors were wary after Trump’s previous one-month exemption for automakers had briefly lifted stock prices before the market dipped again.
Asian Markets React to Wall Street’s Slide
The Nikkei 225 in Tokyo dropped 2.1% to 36,898.25, weighed down by tech stocks. Tokyo Electron tumbled 3.6%, and Advantest fell 2.3%, mirroring losses in their U.S.-listed counterparts.
Hong Kong’s Hang Seng Index managed a 0.6% gain to 24,504.80, while the Shanghai Composite remained nearly flat at 3,381.33.
Australia’s S&P/ASX 200 slipped 1.8% to 7,951.90, and South Korea’s Kospi edged down 0.1% to 2,574.06. Meanwhile, Taiwan’s Taiex dropped 0.7%, India’s Sensex fell 0.7%, and Bangkok’s SET gained 0.7%.
U.S. Markets Face Continued Volatility
On Thursday, Wall Street saw another round of losses. The S&P 500 slid 1.8% to 5,738.52, the Dow Jones fell 1% to 42,579.08, and the Nasdaq plunged 2.6% to 18,069.26, slipping more than 10% below its December record.
Investor sentiment remains cautious, with concerns that Trump’s tariff manoeuvres could escalate into a broader trade war, increasing costs for businesses and consumers alike. While some hope his strategy is merely a negotiation tactic, uncertainty remains high.
U.S. Job Market in Focus
The next big test for Wall Street comes with the U.S. Labour Department’s monthly jobs report. Economists anticipate a strong hiring rebound in February, which could bolster consumer spending and stave off recession fears. However, recent warnings from major retailers suggest growing concerns about consumer spending power.
Retailers and Tech Stocks Take a Hit
Macy’s reported weaker-than-expected year-end revenue, causing its stock to dip 0.7%. Semiconductor companies, which have soared on AI demand, saw steep declines. Nvidia dropped 5.7%, and Broadcom fell 6.3% ahead of its earnings release.
European Markets and Currency Movements
European stocks were mixed after the European Central Bank cut interest rates as expected. German stocks jumped 1.5%, buoyed by news that the country’s upcoming coalition government plans to ease borrowing restrictions, signalling increased spending.
The U.S. dollar weakened against the Japanese yen, falling to 147.72 yen, while the euro strengthened slightly to $1.0808. Rising labour costs in Japan have fuelled speculation that the central bank may soon hike interest rates.
Oil Prices Hold Steady
U.S. crude oil prices inched down 4 cents to $66.32 per barrel, while Brent Crude dropped just 1 cent to $69.45 per barrel, reflecting stable global demand.
