Investors retreat from risk assets after Trump imposes new tariffs and US-Iran conflict escalates, dragging regional benchmarks lower.
Asian stock markets fell sharply Friday as renewed US-Iran tensions and fresh tariffs from President Donald Trump spurred a broad risk-off move. Japan’s Nikkei 225 declined nearly 3%, while South Korea’s KOSPI led losses with a 4.5% drop, underperforming peers across the region.
The sell-off follows a week of heightened geopolitical uncertainty, with Iran vowing retaliation after a US airstrike killed a senior military commander. Trump’s announcement of additional tariffs on Chinese goods added to concerns over global trade stability, weighing on export-driven markets.
Regional currencies and bond yields also reflected the shift, with safe-haven assets gaining as investors sought shelter from volatility.