Nikkei 225 dropped 0.8%, Straits Times Index shed 0.5%, S&P/ASX 200 slid 0.8%, Shanghai Shenzhen CSI 300 declined 1%, while the Shanghai Composite index shed 0.8%

Most Asian stock markets dropped on Friday, while Chinese shares led declines amid escalating trade tensions with Washington.

Nikkei 225 dropped 0.8% on Friday after sharp gains in the last two sessions, but the index was still set for a 0.6% weekly loss. The broader TOPIX index eased 0.7% for the day.

Straits Times Index shed 0.5%, on track for over 2% weekly drop.

S&P/ASX 200 slid 0.8% after hitting a record high of 9,109.7 points in the previous session, when a weak jobs report boosted expectations of further policy easing by the Reserve Bank of Australia (RBA).

Chinese shares slipped the most in the region, as trade tensions between Beijing and Washington remained heightened. Last week, Trump threatened to impose additional 100% tariffs on Chinese imports starting Nov. 1, in response to Beijing’s expanded curbs on rare earths exports.

The renewed friction has reignited fears of another trade war between the world’s two largest economies, after they averted higher tariffs earlier this year by cutting deals.

Shanghai Shenzhen CSI 300 declined 1% on Friday, while the Shanghai Composite index shed 0.8%.

Hang Seng index plunged 1.4%, poised to lose nearly 3% this week.

KOSPI briefly bucked the regional trend, rising 1.2% to a new record high of 3,794.87 points early in the session. However, the index later gave up all gains as the broader caution weighed.

South Korea’s chief presidential policy adviser said on Thursday he was “optimistic” about talks to finalize a trade agreement with the U.S.

Seoul and Washington are reportedly working to ease disputes over tariffs and supply chain cooperation, particularly in the semiconductor and electric vehicle sectors.