TOKYO - Asian stocks, already under pressure from growing global growth fears, tumbled on Thursday after New York markets slumped overnight because the United States opened a new trade war front by saying it will impose tariffs on US$7.5 billion of goods from the European Union.
Oil future extended their decline in Asia as a bigger-than-expected increase in US crude inventories and growing evidence of slowing economic growth point to lower energy demand. "In the short term it looks a bit dicey given the declines we've already had in the past two days," said William O'Loughlin, portfolio manager at Rivkin Asset Management in Sydney.
The United States on Wednesday said it would enact 10 per cent tariffs on European-made Airbus planes and 25 per cent duties on French wine, Scotch and Irish whiskies and cheese from across the continent as punishment for illegal EU aircraft subsidies. The two-year yield fell to 1.4760 per cent, close to a two-year low of 1.4280 per cent, after a weak US private sector jobs report depressed boosted expectations that the Federal Reserve will cut interest rates this month.