Market Tensions Surge Amid New Tariff Threats by Trump

Asian stocks were pressured as Trump's tariff threats rose on Canada, Mexico, and China. While the New Zealand dollar rebounded after a rate cut, Japan's Nikkei and the yen saw opposite trends. Investors anticipated volatile market responses leading into the U.S. Thanksgiving holiday.

Asian markets experienced significant volatility on Wednesday following U.S. President Donald Trump's announcement of new tariffs against Canada, Mexico, and China. This development has instigated fears among investors, impacting stock performances across the region.

The Japanese yen strengthened amidst declining yield on U.S. Treasuries, while Japan's Nikkei index notably underperformed, dropping by 0.9%. Meanwhile, the New Zealand dollar recovered after a surprise rate cut by the nation's central bank.

In the global commodities market, oil prices fell amid potential ceasefire developments in the Middle East. As the trading week progresses, investors are looking ahead to the U.S. Thanksgiving break and official reports from the Federal Reserve's preferred inflation measures.

(With inputs from agencies.)