MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.7 per cent, KOSPI plunged 3 per cent, Nikkei dropped 0.4 per cent and Hang Seng index eked out a small gain of 0.2 per cent

Asian shares fell on Friday after the US imposed steep tariffs on dozens of trading partners, while investors anxiously await US jobs data that could make or break the case for a Fed rate cut next month.

Late on Thursday, President Donald Trump signed an executive order imposing tariffs ranging from 10 per cent to 41 per cent on US imports from dozens of countries and foreign locations. Rates were set at 25 per cent for India’s US-bound exports, 20 per cent for Taiwan’s, 19 per cent for Thailand’s and 15 per cent for South Korea’s.

He also increased duties on Canadian goods to 35 per cent from 25 per cent for all products not covered by the US-Mexico-Canada trade agreement, but gave Mexico a 90-day reprieve from higher tariffs to negotiate a broader trade deal.

Taiwan’s President Lai Ching-te said the rate is “temporary” and is expected to be reduced further once a deal is reached.

At this point, the reaction in markets has been modest, and I think part of the reason for that is the recent trade deals with the EU, Japan, and South Korea have certainly helped to cushion the impact, said Tony Sycamore, analyst at IG.

The market now, I think, has probably taken the view that these trade tariff levels can be renegotiated, can be walked lower over the course of time, he said.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.7 per cent, bringing the total loss this week to 1.8 per cent. South Korea’s KOSPI plunged 3 per cent while Taiwanese shares fell 0.9 per cent.

Japan’s Nikkei dropped 0.4 per cent. Chinese blue chips were flat and Hong Kong’s Hang Seng index eked out a small gain of 0.2 per cent.