Asian markets experienced a widespread retreat on Thursday, mirroring a selloff on Wall Street that was sparked by disappointing earnings reports from major technology companies. Renewed concerns regarding potential trade curbs by the United States against China further dampened investor sentiment.

Most Asian stock markets extended losses, with Japanese and Chinese shares taking the lead in declines. The regional selloff was also influenced by Wall Street's overnight slump, which was fueled by mixed earnings reports, including a significant drop in Tesla's profits.

Reports indicate that Washington is increasing trade tensions with Beijing. This development has resurfaced worries about a potential escalation in the trade conflict between the two economic superpowers, contributing to the negative market sentiment.

In response to China's recent export controls on rare earth minerals, the U.S. President had threatened to impose a 100% tariff on all Chinese goods. Although he later hinted at potential negotiations, the initial threat had already rattled markets. China has vowed to retaliate if the tariffs are implemented.

Despite the overall negative trend, South Korea's markets edged higher, reaching fresh record peaks after the country's central bank decided to hold interest rates steady, a move that was widely anticipated.

The losses in Asian markets come after a period of volatility influenced by U.S.-China trade tensions. Earlier in the week, markets had gained some ground following conciliatory comments from the U.S. President, which eased concerns about the trade relationship.

However, the positive momentum proved to be short-lived as the threat of new trade curbs loomed. Investors are now closely monitoring developments in U.S.-China relations, as any further escalation could have significant implications for regional and global markets. The situation remains fluid, and market participants are bracing for potential further volatility as the U.S. and China navigate their complex trade relationship. Mixed earnings reports from tech megacap stocks also contributed to the overall negative sentiment, deepening the selloff that started on Wall Street. In Japan, markets reassessed the odds that LDP leader Sanae Takaichi will become prime minister and roll out fresh fiscal stimulus after Komeito quit the ruling coalition on Friday, ending a partnership of more than 25 years over what it called Takaichi's failure to “provide sufficient answers regarding political funding issues."