A man carrying a kite in the shape of the Chinese national flag walks along the Bund while buildings of Pudong’s Lujiazui financial district in Shanghai, China
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Asia-Pacific markets were set to fall Friday, after Wall Street resumed sell-off overnight as trade war tensions between the world’s two largest economies fueled risk-off mood.
Australia’s S&P/ASX 200 futures were at 7,622, compared to the index’s last close at 7,709.6.
Japan’s Nikkei 225 futures also pointed to a lower open for the market. The futures contract in Chicago was at 33,435 and its counterpart in Osaka last traded at 33,440 compared to the index’s previous close of 34,609.
Hong Kong’s Hang Seng index futures were at 20,601, slightly lower than the HSI’s last close of 20,681.78.
U.S. President Donald Trump announced a tariff U-turn Wednesday, dropping the new reciprocal tariff rates on imports from most countries for 90 days.
“The extension of time does not alleviate uncertainty,” ANZ analysts wrote in a note. “There is skepticism about the outcome of trade negotiations, and that will continue to weigh on investment and thus the growth outlook.”
Additionally, the cumulative tariff rate on China now would be 145%, the White House confirmed to CNBC on Thursday. The figure consists of the new 125% duty on goods, on top of the 20% duty linked to the fentanyl crisis.
U.S. stock futures moved higher as investors look to close out a volatile week, punctuated by sharp swings for the major averages. S&P 500 futures added 0.3%, while Nasdaq 100 futures climbed roughly 0.1%. Futures tied to the Dow Jones Industrial Average ticked higher by 28 points, or nearly 0.1%.
Overnight in the U.S., the three major averages closed lower, giving back some of the gains from the historic rally seen in the previous session after President Donald Trump announced a 90-day reprieve on some of his “reciprocal” tariffs.
The S&P 500 sold off 3.46% and closed at 5,268.05, while the Nasdaq Composite slid 4.31% to end at 16,387.31. The Dow Jones Industrial Average dropped 1,014.79 points, or 2.5%, settling at 39,593.66.
— CNBC’s Pia Singh, Hakyung Kim and Sean Conlon contributed to this report.