Asian shares faced a downturn on Friday as major indices in Japan, Hong Kong, and South Korea dropped over 2%, following a sharp decline in Wall Street indexes driven by concerns surrounding artificial intelligence technology. President Donald Trump’s decision to impose 25% tariffs on imports from Mexico and Canada, along with a 20% hike on Chinese product tariffs, added to investor unease. In Tokyo, the Nikkei 225 index fell by 3.4%, primarily due to plummeting prices of technology company stocks. Hong Kong’s Hang Seng and Shanghai Composite indices also experienced losses, while South Korea’s Kospi declined by 3.2%. Furthermore, the S&P 500, Dow Jones Industrial Average, and Nasdaq composite in the U.S. recorded losses, reflecting worries about the economic outlook, inflation, and potential job cuts.

Key stocks like Nvidia faced an 8.5% drop despite a positive profit report, signaling broader market volatility. Berkshire Hathaway’s 1.7% rise, led by Warren Buffett, provided some stability. Trump’s tariff announcements further impacted Treasury yields, raising concerns about inflation. The uncertainty surrounding trade tensions has heightened economic anxiety among U.S. households, affecting consumer confidence and spending. Such uncertainties also pose challenges for the Federal Reserve in managing slowing growth and rising inflation. Despite these concerns, the U.S. economy remains relatively stable for now, with reported economic performance and inflation estimates holding steady. Additionally, a slight increase in unemployment benefit claims highlights ongoing economic challenges.

In the commodities market, crude oil prices dipped, while the U.S. dollar weakened against the Japanese yen and euro. Overall, the global economic landscape appears mixed, with ongoing trade tensions and economic indicators influencing market sentiment.