Key Points
- Nikkei 225 fell 3%, closing at 37,109.79, as trade fears triggered a broad sell-off in Asian markets.
- USD/JPY dipped to 149.62, as traders sought safety in the yen amid growing trade risks.
Asian Stocks Drop as Trade Tensions Resurface
Asian markets suffered steep losses on Friday after U.S. President Donald Trump reaffirmed plans for additional tariffs on China, Canada, and Mexico. The fresh 10% tariff on Chinese imports, set to take effect on March 4, alongside the 25% levies on Canada and Mexico, heightened investor concerns over escalating trade tensions.
The Nikkei 225 plunged 3.0% to 37,109.79, while South Korea’s Kospi fell 3.4% to 2,532.39, and Hong Kong’s Hang Seng Index lost 2.7% to 23,075.46. The risk-off sentiment extended across regional equities, with traders pulling capital from export-heavy stocks and tech firms that rely on stable global trade conditions.
The Japanese yen strengthened, with USD/JPY falling to 149.62, as traders sought refuge from market volatility. The Australian dollar also declined 0.5% to 92.99, while the euro weakened 0.2% to 155.45.
Technical Analysis
The USD/JPY pair is showing a mild uptrend of 0.13%, with the price opening at 149.798 and closing at 149.987. The pair tested a high of 150.161 before pulling back slightly, while the low was recorded at 149.098. The moving averages (5, 10, 30) are sloping upward, suggesting continued bullish momentum, and the price is currently attempting to break above resistance at 150.16. The MACD shows increasing buying pressure, with the MACD line crossing above the signal line and a growing positive histogram.
Picture: USD/JPY eyes 150.16 breakout as bullish momentum builds, as seen on the VT Markets app
Looking ahead, a sustained move above 150.16 could push the pair toward higher resistance levels, possibly targeting 150.50 or higher. However, failure to break above this level may result in a pullback toward 149.60 or 149.20, where recent support has held. Traders should keep an eye on US economic data, Treasury yields, and Bank of Japan (BoJ) policy signals, as these will heavily influence the next move.
With trade uncertainty dominating sentiment, markets remain sensitive to further tariff developments and central bank guidance in the coming weeks.
