By Shinichi Saoshiro
TOKYO (Reuters) - U.S. stock markets slid and the yen rose against the dollar on Friday after U.S. President Donald Trump proposed additional tariffs on China, aggravating trade tensions and smothering a revival in broader investor risk appetite.
The S&P 500 E-mini futures were down 1.45 percent
Dow futures <1ymcv1> were down 1.7 percent.
The Dow <.DJI> and the S&P 500 <.SPX> posted gains for a third day in a row on Thursday, the longest streak in about a month, as investor fears of an escalating trade conflict between the United States and China abated, turning the focus to upcoming earnings. [.N]
Trade tensions, however, returned to the fore after Trump said in a statement late on Thursday that he had instructed U.S. trade officials to consider $100 billion in additional tariffs on China "in light of China's unfair retaliation" against earlier U.S. tariffs.
Futures trading pointed to a lower open for Japan's Nikkei <.N225>, which had risen 1.5 percent on Thursday.
The dollar, which had risen to a one-month high against the yen on Thursday on an earlier easing of trade fears, slipped against its Japanese peer after Trump's latest trade offensive.
The greenback was down 0.3 percent at 107.060 yen
The dollar had risen to a one-month peak versus the yen, bolstered by Wall Street's bounce on Thursday when the United States appeared to signal a willingness to resolve the trade dispute.
The yen, a perceived safe-haven currency, is often sought in times of market turmoil and political tensions.
The dollar dipped 0.1 percent to 0.9624 Swiss franc
The euro rose 0.1 percent to $1.2251
Beyond the trade turmoil, financial markets are focussed on Friday's U.S. non-farm payrolls report, which could determine the pace of future Federal Reserve interest rate rises and consequently the dollar outlook.
(Reporting by Shinichi Saoshiro; Editing by Eric Meijer)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
RECOMMENDED FOR YOU