Asian stocks were in red on the back of intensifying trade tensions between China and the United States. Japan's Nikkei shares fell 540 points or fell 2.5% to 20990. Australian and South Korean stocks also fell 0.49% and 0.86%, respectively. The Shanghai Composite Index fell 1.4%, or fell 42 points to 2867.
On the Forex market the anti-risk Japanese Yen solidly bid with USD/JPY barely holding above 107.00, while recording its biggest single-day drop in the last two years on Thursday.
US President Donald Trump said on Thursday that the United States would impose a 10% tariff on an additional $ 300 billion in Chinese goods from September 1, as China failed to meet its commitments made during the recent trade negotiations.
The sudden escalation triggered investors' reaction, forcing them to withdraw money from risky assets and convert it into safe assets such as gold and Japan's yen.
US stocks fell 1%, the Dow Jones Industrial Average fell 280 units. Futures on the S & P500 have recently fallen 0.28%
It should be noted that escalating trade tensions and an extended period of risk aversion are likely to put pressure on the US Federal Reserve to impose another rate cut before the end of the year.
The US central bank cut interest rates by 25% on Wednesday. This was the first interest rate cut since 2008 that was penalized as a political adjustment by Federal Chairman Powell.