In Tokyo, Japan, the Nikkei stock average dropped by 5% early on Friday, following the significant losses in the U.S. stock market. Concerns over the uncertainty of the trade war's impact on the economy contributed to the decline.

At 0012 GMT, the Nikkei was at 32,855.56, down by 5.1%, while the broader Topix index fell by 4.7% to 2,419.32.

The U.S. stock market also experienced substantial losses, erasing gains from the previous day, as worries about the escalating trade tensions between Washington and Beijing outweighed positive economic data and U.S.-Europe trade talks.

The Nikkei had surged by 9% the day before after President Donald Trump announced a 90-day tariff pause for several countries.

Fast Retailing, the owner of Uniqlo, saw a 3.87% decline in its stock value on Friday. Additionally, chip-related companies like Tokyo Electron and Advantest experienced drops of 5% and 7.5%, respectively.

Across all 33 industry sub-indexes on the Tokyo Stock Exchange, declines were observed, with the worst-performing sector being refiners, which fell by 6.6%.

(Junko Fujita reporting; Edited by Alan Barona)