Tokyo — Stock markets in Asia on Friday extended a Wall Street rout, as investors were spooked by the spectre of a global trade war after President Donald Trump announced the US would impose hefty tariffs on steel and aluminium imports. Trump said duties of 25% on steel and 10% on aluminium would be formally announced next week, sparking the concern of retaliatory moves from major trade partners like China, Europe and neighbouring Canada in a blow to the global economy. "The world stands on the brink of a trade war as Donald Trump announces severe tariffs on steel and aluminium — forget the yield curve — this is how recessions start," said Robert Carnell, head of research, Asia-Pacific at ING In Singapore. "Trade is just about the only thing economists are agreed on — more is better." MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 1.1%, led by a fall in South Korean shares while Japan’s Nikkei tumbled 2.9%. For the week, they are down 2.3% and 3.6% respectively. ...
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