Japanese markets slump on concerns over Trump's tariff measures
Canada and Mexico ordered retaliatory tariffs on American goods while China vowed countermeasures. The EU also warned of firm retaliation if targeted.
Investors fear that a trade war could hit the earnings of major companies and dent global growth.
The U.S. dollar rallied on risk-off sentiment, denting demand for bullion. Oil prices jumped, with WTI crude futures rising more than 2 percent on supply disruption fears.
Markets in mainland China remained closed for the Lunar New Year holiday. Hong Kong's Hang Seng index finished marginally lower at 20,217.26, ending off the day's lows as weak Chinese manufacturing data underlined the need for more government support measures to support the economy.
A private gauge of China's manufacturing activity expanded at a slower pace in January, while the official index tumbled into contraction to hit a five-month low, partly due to the approach of the public holidays.
Japanese markets slumped on concerns over the escalation of Trump's tariff measures.
The Nikkei average fell 2.66 percent to 38,520.09 while the broader Topix index settled 2.45 percent lower at 2,720.39. Automakers led losses, with Toyota Motor, Honda and Nissan plummeting 5-7 percent.
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