Asian markets decline due to trade war fears

Asian markets struggled on Friday as concerns about trade tensions overshadowed earlier optimism from a US Federal Reserve meeting. The mood was affected by President Donald Trump's ongoing tariff policies. Investors were initially encouraged by Jerome Powell, the Fed chair. He suggested that the effects of new tariffs on imports might be temporary. Recently, China announced plans to boost consumer spending to support its economy, which also helped lift spirits. However, Trump's unpredictable trade actions kept traders cautious. Upcoming tariffs set to begin in early April added to this uncertainty. Analysts noted that investors are worried about the potential impacts of a trade war. Rodrigo Catril from National Australia Bank mentioned that market sentiment is fragile. In early trading, stock prices fell in cities like Hong Kong, Shanghai, and Singapore. Meanwhile, markets in Tokyo, Sydney, Seoul, and Wellington saw slight gains. With the uncertain outlook, gold prices increased, as many investors sought safety from market volatility. Oil prices also rose due to rising tensions in the Middle East. This was partly influenced by military actions, including attacks by Israel in Gaza and US strikes against Huthi rebels in Yemen. Additionally, US sanctions on a Chinese oil refinery tied to Iranian oil sales raised more concerns among traders.