Tariffs dampen investor sentiment

Investor sentiment worsened after US President Donald Trump announced that the United States would implement "reciprocal tariffs "on imports from multiple countries, sparking concerns over a potential economic downturn for not only the US but other economies too.

Government leaders of Japan, the Republic of Korea and Australia have called for responsive measures while analysts noticed negative signals in the markets.

Japanese stocks plunged on Thursday as Trump pressed ahead with higher-than-expected tariffs. The benchmark Nikkei 225 briefly tumbled over 1,600 points from the previous day, hitting 34,102 — the lowest level since early August — during trading hours on the Tokyo Stock Exchange. By the close, the Nikkei 225 marked a 2.8 percent decline.