Geopolitical Tensions and Tariffs Shake Global Stocks as Investors Seek Safe Havens

Asian stocks dropped at week's end amid geopolitical worries and U.S. tariffs concerns, affecting investor risk appetite. Central banks held rates steady, citing trade tensions. The Hang Seng slid over 2%, while Japan's Nikkei rose. Oil prices saw gains, while gold reached near-record highs, driven by safe-haven demand.

In a week fraught with geopolitical concerns and escalating fears over U.S. tariffs, Asian stocks took a hit, marking a downbeat end to trading. Investors gravitated towards safe-haven assets like gold, which hovered near record highs, as the S&P 500 and Nasdaq futures remained steady in Asia.

Policymakers globally voiced caution amid growing uncertainties in economics and politics. The Federal Reserve, alongside the Bank of Japan and the Bank of England, maintained steady rates, citing trade tensions primarily instigated by U.S. President Donald Trump's tariff plans as a significant challenge.

As Israeli airstrikes on Gaza and a significant blast from a Ukrainian drone attack on a Russian military site highlighted rising geopolitical tensions, markets turned sharply. MSCI's Asia-Pacific index dropped, with Hong Kong's Hang Seng index falling over 2%, while Japan's Nikkei inched upward on strong economic data.

(With inputs from agencies.)