Asian stocks slide as fears grow about trade and the global economy

Major markets in Asia were down Thursday as investors continued to digest some poor manufacturing data out of the United States, along with the country's newly announced plans to impose tariffs on $7.5 billion worth of European exports as soon as October 18.

Japan's Nikkei and Australia's S&P/ASX 200 dropped 2% and 1.9%, respectively, in early trading.

"The pain will be felt across Asia today," wrote Jeffrey Halley, senior market analyst for Asia Pacific at Oanda, in a research note.

Asian markets now have to deal with the damaging effects of several trade disputes, said Stephen Innes, a market strategist for Asia Pacific at Axi Trader. Spats between the United States and China, South Korea and Japan, and the United States and the European Union are all creating causes for concern.

"With the global economic data continuing to deteriorate this new trade war front will stoke the recessionary fears to no end," Innes wrote in a research note Thursday.

Hong Kong's Hang Seng Index is also vulnerable, according to Halley. The index, which was down 0.4% in early trading, is grappling with a set of just-released retail sales figures that were abysmal.

After the market closed Wednesday, the city's government reported that retail sales value fell 23% in August compared to a year earlier. Total retail sales volume in August fell by more than 25%, accounting for price changes, from a year prior.

The year-on-year decline is the steepest for a single month on record, according to a government spokesperson. The plunge reflected "severe disruptions" to tourism and consumer activity caused by escalating demonstrations.

Protesters clashed with police and residents across multiple districts on Tuesday, the 70th anniversary of the founding of the People's Republic of China. The protests have lasted for months.

On Thursday, major retail groups and shopping mall owners were among the hardest hit on the Hang Seng. Sun Hung Kai Properties, a major shopping center owner and property developer, declined 1.1% in trading. Rival CK Hutchison also dropped 1.1%. Both were down more than 2% earlier in the day.

Chinese markets, including the Shanghai Composite, remained closed Thursday for the holiday week.

South Korea's Kospi was also closed on Thursday for a public holiday. It closed down nearly 2% Wednesday.