Asian Stocks Slide as U.S. Tariffs Hit Global Markets, Investors Eye Jobs Data

Asian shares fell on Friday after the U.S. imposed steep tariffs on dozens of trading partners, heightening market uncertainty ahead of crucial U.S. jobs data that could determine the Federal Reserve’s next interest rate move.

President Donald Trump signed an executive order late Thursday implementing tariffs of 10% to 41% on imports from multiple countries. India faces 25%, Taiwan 20%, Thailand 19%, and South Korea 15%. Tariffs on Canadian goods rose to 35% from 25% for items not covered by the U.S.-Mexico-Canada trade pact, while Mexico received a 90-day exemption to negotiate a broader deal. Taiwan’s President Lai Ching-te described the tariffs as temporary and expected reductions once agreements are reached.

MSCI’s Asia-Pacific index outside Japan dropped 0.7%, extending weekly losses to 1.8%. South Korea’s KOSPI plunged 3%, Taiwan’s benchmark slipped 0.9%, Japan’s Nikkei declined 0.4%, while China’s blue chips were flat and Hong Kong’s Hang Seng edged up 0.2%.

European and U.S. futures also weakened, with EUROSTOXX 50, Nasdaq, and S&P 500 futures down 0.2%. Wall Street retreated overnight after Amazon reported disappointing earnings, sinking 6.6% after hours, while Apple gained 2.4% on stronger-than-expected revenue guidance.

Investors are closely watching July’s U.S. nonfarm payrolls, expected to rise by 110,000, with unemployment seen at 4.2%. A stronger-than-expected report could reduce chances of a September Fed rate cut, now priced at 39%, down from 65% earlier this week.

The dollar index climbed 2.5% this week to a two-month high of 100.1, while the yen weakened to 150.7 per dollar. U.S. Treasury yields held steady, oil prices hovered near $70, and gold traded around $3,286 an ounce.