The U.S. dollar was broadly firmer on Friday with the euro pulling further away from a five-month peak as markets grappled with escalating global trade tensions and risks of a sharp economic downturn.

Most Asian stocks advanced on Friday as Chinese shares surged to over a two-month high on the central bank’s vow to cut interest, however, gains in other regional markets were capped by concerns over escalating trade tensions.

Oil prices rose in Asian trading on Friday after U.S. President Donald Trump tightened sanctions on Iranian oil and shipping, although they were set for weekly losses on oversupply concerns amid Russia-Ukraine ceasefire talks and escalating trade tensions. 

Following the introduction of new U.S. tariffs on EU steel and aluminum imports, the European Commission has initiated countermeasures on U.S. imports into the EU.

Many of Japan’s biggest companies from tech conglomerates to Toyota (NYSE:TM) have met union demands for substantial wage hikes for a third consecutive year, seeking to help workers cope with inflation and retain staff amid labour shortages.

U.S. consumer prices increased moderately in February as higher shelter costs were partially offset by cheaper airline fares, giving the Federal Reserve room to keep interest rates unchanged next week while monitoring the economic impact of a trade war.