Tokyo: Asian markets tumbled in early trade on Friday, with Japan’s Nikkei 225 plunging more than five percent, as optimism over a temporary pause in U.S. tariffs faded quickly amid ongoing concerns about global trade tensions.

The Nikkei, which had soared 9.1 percent on Thursday following U.S. President Donald Trump’s announcement of a 90-day pause on certain tariffs, dropped 5.4 percent in early trading. The sharp reversal highlighted investor anxiety over the broader implications of Trump’s trade policy.

Other regional markets followed suit: South Korea’s Kospi was down 1.64 percent, while Australia’s ASX shed over two percent.

Meanwhile, safe-haven assets surged. Gold reached another record high, while the yen strengthened by 0.9 percent against the U.S. dollar. Oil and the dollar both dipped amid fears of a global economic slowdown.

Trump’s latest tariff strategy includes maintaining a blanket 10 percent duty on most countries. He temporarily paused plans for even steeper tariffs — 20 percent on the European Union and up to 24 percent on Japan. However, tensions with China escalated as the White House confirmed tariffs on Chinese imports have been increased to a staggering 145 percent. China has already responded with its own retaliatory measures.