Asia’s Markets Slide as Trump-Musk Clash Rattles Tech Stocks, Eyes Now on US Payrolls
Asian markets opened Friday with guarded optimism following a dramatic overnight fallout between U.S. President Donald Trump and tech mogul Elon Musk, which sent ripples across global markets.
The tense episode drove Tesla shares down by 14 percent, erasing nearly $150 billion in market value. This comes after a volatile week for Asian investors already unnerved by U.S. tariff policies, signs of slowing global growth, and soft American economic data.
Asian stocks had risen the previous day on signs of easing global trade tensions, with Hong Kong’s Hang Seng and South Korea’s KOSPI both continuing their recovery. On Wall Street, the S&P 500 added 0.58 percent. However, the upbeat sentiment didn’t last.
Most Asian stocks fell on Friday, reflecting Wall Street’s tech-led weakness. Japan’s Nikkei was a rare exception, rising 0.3% as local investors appeared less rattled by U.S. politics and focused more on domestic industrial earnings.
Asian tech companies exposed to American markets followed Tesla in its dive. The political drama has cast doubt over SpaceX’s government contracts and broader investor confidence in high-growth tech firms.
Even Bitcoin was not spared, falling 4% amid speculation that Trump’s relationship with Musk—and the broader, shadowy world of digital assets—remains as unclear as the motivations of a four-dimensional chess master.
Investors are meanwhile awaiting Friday’s U.S. non-farm payroll data for direction. Following a series of lackluster economic readings earlier in the week, an underwhelming job report would raise expectations for a rate cut from the Federal Reserve.
Futures are now pricing in close to a 90% chance of a cut next month and another before December. A big jobs print, stronger than expected, could dash those hopes.
Currency markets registered the nervousness. The euro rose to a six-week high of $1.1495 following the European Central Bank’s rate cut but an indication that the rate-cutting cycle may be nearing an end. The dollar was a little weaker against the yen as traders moved into safer assets ahead of the payrolls report.
Broadly, investors took little comfort from a recent phone call between Trump and Chinese President Xi Jinping. Although both leaders said they would keep communication lines open, there was no apparent breakthrough on how to address the trade dispute.
Japan dispatched a trade envoy, Ryosei Akazawa, to Washington in what is the latest indication that Asian countries are increasingly concerned about U.S. unpredictability on tariffs.
Oil prices edged down, with U.S. inventories still gaining and Saudi Arabia cutting July prices to Asian importers. Gold too dipped after climbing earlier in the week to trade at $3,372.70 an ounce. U.S. crude was near $62.75 a barrel.
Wall Street futures are flat, and European stock futures are pointing to a weaker open, down 0.2 percent in Euro Stoxx 50 futures. The tone of the day ahead could depend on how the jobs report is read and if something less agitated surfaces from the Trump-Musk feud.
