Closing Bell 7th March: Bank stocks slump as XJO drops below 8000

Asia-Pacific markets declined on Friday, mirroring Wall Street losses as investors remained unconvinced by U.S. President Trump’s tariff concessions. Japan’s Nikkei 225 fell 1.82%, while the Topix dropped 1.24%. South Korea’s Kospi and Kosdaq decreased by 0.30% and 0.25% respectively. Hong Kong’s Hang Seng index opened 0.31% lower, and mainland China’s CSI 300 index dipped 0.22%.

Yields on long-term Japanese government bonds reached levels unseen since the 2008 financial crisis. Investors await China’s combined January-February trade data, with economists projecting exports growth to slow to 5% year-on-year and imports growth to remain steady at 1%.

U.S. economic indicators, including the Federal Reserve’s Beige Book and ISM’s manufacturing reading, raised concerns about rising input costs due to tariffs. Challenger, Gray & Christmas reported layoff announcements reaching 2020 highs, attributed to efforts by Trump and Elon Musk to reduce the federal workforce.

These factors collectively contributed to the bearish sentiment across Asian markets, reflecting ongoing economic uncertainties and trade tensions.