Trump slaps 30% tariffs on EU, Mexico
Investing.com-- Asian equity markets tumbled on Friday as fears over a sudden rise in Middle East tensions following Israel’s strikes on Iran ignited a broad risk-off mood.
U.S. stock index futures slumped in Asian trading on Friday after the news. Investors were also worried about more tariff pressures after President Donald Trump said he could raise auto tariffs soon.
Japan, S. Korea stocks lead losses amid Israel-Iran tensions
Japan’s Nikkei 225 dropped 1.2%, while South Korea’s KOSPI fell 1.3%, and Hong Kong’s Hang Seng index slid 0.8% as investors shunned equities in favour of safe-haven assets and commodities.
The sell-off was triggered by reports of a large-scale Israeli air campaign targeting “dozens” of Iranian nuclear, missile, and military sites early on Friday.
Sirens blared across Israel, and state of emergency protocols were enacted amid expectations of retaliatory Iranian missile or drone strikes.
U.S. Secretary of State Marco Rubio said that Israel carried out its military action against Iran independently, citing self-defense as the driving motive behind the strikes.
The attacks reignited concerns over risks to Middle East oil flows and global growth, which exacerbated the already fragile sentiment driven by global trade uncertainties.
China’s Shanghai Composite index, and the Shanghai Shenzhen CSI 300, were both trading 0.7% lower.
Australia’s S&P/ASX 200 fell 0.4%, while Singapore’s Straits Times Index declined 0.5%.
India’s Nifty 50 slipped 1%, while Indonesia’s Jakarta Stock Exchange Composite Index lost 0.6%.
Global risk aversion saw a surge in demand for traditional defensive assets.
Trump tariff talks add to negative mood
Trump warned on Thursday that he could raise auto tariffs soon, stoking fresh angst over trade just a day after claiming that the U.S.-China trade deal was "done."
The president also said he will send letters to major U.S. trading partners in the next two weeks outlining his planned trade tariffs, ahead of a July 9 deadline to strike trade deals with his administration.