CANBERA (dpa-AFX) - Asian stocks extended losses in thin trade on Friday, with markets in mainland China, Hong Kong and Taiwan closed for Tomb Sweeping Day holiday.
Investor sentiment remained fragile as U.S. President Donald Trump's reciprocal tariffs fueled concerns about inflation and growth.
According to UBS, the latest tariff measures unveiled by Trump may knock down U.S. economic growth by 2 percentage points this year and raise inflation close to 5 percent.
However, Trump has downplayed the impact. 'The markets are going to boom, the stock is going to boom and the country is going to boom,' Trump said.
As growth worries mount, there is now increased speculation that the Federal Reserve could accelerate interest rates to make it easier for U.S. companies and households to borrow and spend.
Investors await the monthly U.S. jobs report as well as remarks by Federal Reserve Chair Jerome Powell later in day for further direction.
The dollar weakened to a six-month low and gold edged down from recent record highs while crude oil prices fell below $70 a barrel on demand concerns and after a larger-than-expected production increase by OPEC and its allies.
Japanese markets tumbled to hit an eight-month low as lower bond yields weighed on banks and exporters were hit by a stronger yen.
The Nikkei average fell 2.75 percent to 33,780.58 while the broader Topix index settled 3.37 percent lower at 2,482.06.
Honda Motor, Toyota, Sony, Mitsubishi UFJ Financial, Mizuho Financial plunged 4-11 percent. Tech stocks also faced selling pressure, with SoftBank Group and Advantest tumbling 7-8 percent.
Seoul stocks fell for a third day running amid tariff woes and as President Yoon Suk Yeol was ousted by the Constitutional Court, ushering in an election.
The Kospi average declined 0.86 percent to 2,465.42, dragged down by semiconductor and auto shares.
Australian markets fell sharply to hit an eight-month low, with energy and tech stocks leading losses on concerns about the global economic outlook.
The benchmark S&P/ASX 200 slumped 2.44 percent to 7,667.80 while the broader All Ordinaries index closed 2.55 percent lower at 7,847.60.
Amotiv shares plummeted nearly 17 percent after the car accessories manufacturer warned it expects lower revenue growth and earnings this financial year.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 index dropped 0.92 percent to 12,225.28.
U.S. stocks nosedived overnight, the dollar experienced its largest single-day decline on record and yields on Treasuries dropped significantly as the announcement of sweeping new tariffs stoked fears of a trade war and the U.S. entering a recession.
A measure of U.S. service sector growth slowed by more than anticipated in March, adding to investor anxiety.
The tech-heavy Nasdaq Composite plummeted 6 percent and the S&P 500 plunged 4.8 percent to reach their lowest levels since last August, while the Dow slumped 4 percent to a nearly seven-month closing low.
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