Asian stocks came under pressure on Thursday as investors flooded into safe haven plays as the administration of U.S. President Donald Trump moves on fronts as diverse as Iran, global trade, immigration and the Supreme Court less than two weeks after taking office.
The Nikkei 225 Index finally plummeted 233.5 points, or 1.2%, to 18,914.58
In Hong Kong, the Hang Seng Index surrendered 133.87 points, or 0.6%, to 23,184.52
Japan's benchmark index lost strength as the investors bought into the yen, in turn strengthening the currency against the dollar. A stronger yen is generally seen as a negative for Japanese stocks.
Japanese policymakers rejected Trump's charges of currency manipulation on Wednesday. Prime Minister Shinzo Abe defended the Bank of Japan's huge stimulus program and said it was to reflate the economy, and was not currency manipulation.
While markets initially responded positively to a Trump presidency in hopes of pro-growth policies like tax cuts, several of his executive orders, such as the indefinite travel ban on visitors from seven Muslim-majority countries, have raised concerns.
Safe-haven currencies were getting a leg up, with yen strengthening to 112.58 against the U.S. dollar, and the New Zealand rising to $0.7300, compared to levels around $0.72 seen earlier. The Australian dollar jumped 0.6% to trade at $0.7643 by mid afternoon Thursday local time.
In Australia, losses were capped by a stronger performance in the gold sub-index, which was up 2%
Australian data showed a record seasonally-adjusted trade surplus of A$3.5 billion ($2.67 billion U.S.) in December, versus analysts expectations of a A$2.2-billion surplus. Exports in December rose by 5% due to higher iron ore and coal prices, while imports rose by 1% from the previous month. The stronger-than-expected trade figures also gave the Australian dollar a boost above the $0.76 handle.
As well, reports surfaced of tension between the American president and Australian Prime Minister Malcolm Turnbull in a phone call over the weekend, where Trump criticized a Australian-U.S. refugee deal brokered by the Obama administration and told Turnbull that he had conversed with other political leaders earlier, but "this was the worst call by far."
Korean markets faltered after data showed that consumer prices rose 2% in January on the back of higher oil prices, beating a forecast of 0.4%
In other markets
Markets in Shanghai remained shuttered for holiday
In Taiwan, the Taiex Index returned from holiday to lose 18.98 points, or 0.2%, to 9,428.97
In Korea, the Kospi index slumped 9.47 points, or 0.5%, to 2,071.01
In Singapore, the Straits Times Index slid 23.41 points, or 0.8%, to 3,044.08
In New Zealand, the NZX 50 fell 1.96 points to 7,053.54
In Australia, the S&P/ASX 200 dipped 7.73 points, or 0.1%, to 5,645.43
