TOKYO, April 4, 2025 (BSS/AFP) - Tokyo's key Nikkei index fell Friday, extending the previous day's losses after Donald Trump sent Wall Street stocks tumbling with sweeping new trade tariffs.

In early trade the Nikkei 225 index was down 1.8 percent at 34,108.23, adding to a drop of 2.77 percent on Thursday. The broader Topix index was off 2.3 percent, having lost 3.08 percent the previous day.

On Thursday, Wall Street's tech-heavy Nasdaq Composite plunged six percent, while the retreat in the S&P 500 was its biggest in a day since 2020.

In Europe, both the Paris and Frankfurt stock exchanges finished the day with losses of more than three percent.

Oil prices plummeted more than six percent on concerns an economic downturn sparked by Trump's trade policies would hit demand. The price of gold hit another new record.

The dollar slumped by as much as 2.6 percent versus the euro, its biggest intraday plunge in a decade, and suffered sharp losses also against the yen and British pound.

On Friday, the US currency fetched 146.33 yen in early Asian trade, rebounding slightly from 145.99 yen in New York.

"US Treasury Secretary (Scott) Bessent has said the current figures are the upper limit, suggesting there is some room for individual negotiations," Tokai Tokyo Securities said.

"But with some moves to impose retaliatory tariffs by other countries and regions, the situation seems to be becoming a trade war," the brokerage said.