Asian stocks witnessed a mixed performance on Friday after U.S. President Donald Trump delivered on his threat to hit $34 billion of Chinese imports with new 25 percent tariffs.
The Shanghai Composite index reversed its earlier losses to end 0.49 percent up to 2,747 points, while Hong Kong's Hang Seng closed 0.47% higher 28,315.62.
The South Korean Kospi Index gained 0.68% to 2,272.87 points and Australia's S&P/ASX 200 index augmented 0.91% to 6,270.30.
In Japan, Nikkei 225 index edged up 1.12 percent to 21,788.14, yet indices in Indonesia, Malaysia and Singapore finished lower.
Now, the U.S. will start collecting 25 percent tariffs on more than 800 Chinese products, including aerospace, IT, robotics and industrial machinery as the new tariffs have become effective.
In response, China has imposed retaliatory tariffs of 25 percent on $34 billion of US goods.
It seems that a trade war between the world’s two biggest economies has begun as Trump told reporters that the US could impose more tariffs if China retaliates, with officials working on a second wave of $200bn of imports.
The market’s reaction to the imposition to the new tariffs on China looked neutral, where shares were more affected on Trump’s threats.
Overnight, the Dow advanced 0.8 percent, the S&P 500 rallied 0.9 percent and the Nasdaq Composite tacked on 1.1 percent.
The dollar index extended its drop for a fourth straight session to 94.00, ahead of U.S. non-farm payrolls data due at 12:30 GMT.
The NFP may show U.S. employers created 195,000 jobs in June, while the
unemployment rate lingered at a record low of 3.8 percent.