ASIAN markets tracked losses across the world on Friday (Feb 28) as US President Donald Trump’s volley of tariff measures sparked fresh fears about a global trade war that could hammer struggling economies.
Disappointing earnings from chip darling Nvidia added to the sense of unease on trading floors, with investors questioning their positions after China’s DeepSeek upended a blockbuster rally in the US tech sector.
Economists are increasingly concerned for the world outlook owing to Trump’s insistence on hammering partners blamed for unfair practices, drug trafficking and immigration issues – and warning of levies on key sectors including auto, semiconductors and commodities.
That has sent shivers through major exporter countries from the Americas to Europe to East Asia.
After a relatively upbeat month on markets, Trump dealt a fresh blow this week, confirming that 25 per cent tariffs on Mexico and Canada would go into effect on Mar 4, while China would face a further 10 per cent levy.
He had also warned the European Union that it could be hit with 25 per cent duties.
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“Tariffs are back in the crosshairs, and a market that had reduced its sensitivity to recent tariff headlines has had to reconsider that reaction function,” said Chris Weston, of Pepperstone Group.
Asian markets were on course to end a volatile week on a down note.
Tokyo briefly shed three per cent, while Shanghai, Sydney, Seoul, Singapore, Wellington, Manila and Jakarta were all well in the red.
Hong Kong was off more than one per cent, with high-flying tech firms also weighed by profit-taking at the end of a blockbuster February that has helped the Hang Seng Index to a three-year high.
Market uncertainty has also dealt a blow to the crypto sphere, with bitcoin diving below US$80,000 for the first time since November, well off the levels above US$109,000 touched last month.
The losses followed a painful day on Wall Street, where the Nasdaq dived more than three per cent as US tech firms – led by the so-called Magnificent 7 – continue to suffer a pull-back following a long-running rally fuelled by investors’ voracious appetite for all things linked to artificial intelligence (AI).
A number of weak economic readings recently have started to stoke concerns that the world’s top economy is slowing down, just as analysts warn that Trump’s plans to slash taxes, regulations and immigration will reignite inflation.
“A macro storm is brewing as a barrage of high-stakes economic data collides with escalating trade tensions, putting markets on edge as February draws to a chaotic close,” said Stephen Innes at SPI Asset Management.
“The AI darlings that led Wall Street’s charge over the past two years are suddenly looking vulnerable, with macro headwinds shifting sentiment from ‘unstoppable’ to deeply ‘unsettled’.
“Nvidia’s post-earnings sell-off was a canary in the coal mine, signalling that even top-tier growth names are struggling to find footing in this environment.”
And Saxo markets’ Charu Chanana added: “While the Magnificent 7 have dominated US markets, China’s tech landscape offers compelling alternatives, particularly as Beijing increases support for the sector.
“With regulatory pressures easing and AI, cloud computing, and semiconductors driving growth, investors are looking at China’s version of big tech and beyond.” AFP
