TOKYO - U.S. stock markets slid and the yen rose against the dollar on Friday after U.S. President Donald Trump proposed additional tariffs on China, aggravating trade tensions and smothering a revival in broader investor risk appetite.

The S&P 500 E-mini futures were down 1.45 per cent, pointing to a lower start for Wall Street later in the session.

Dow futures were down 1.7 per cent.

The Dow and the S&P 500 posted gains for a third day in a row on Thursday, the longest streak in about a month, as investor fears of an escalating trade conflict between the United States and China abated, turning the focus to upcoming earnings.

Trade tensions, however, returned to the fore after Trump said in a statement late on Thursday that he had instructed U.S. trade officials to consider US$100 billion in additional tariffs on China "in light of China's unfair retaliation" against earlier U.S. tariffs.

Futures trading pointed to a lower open for Japan's Nikkei , which had risen 1.5 per cent on Thursday.

The U.S. dollar, which had risen to a one-month high against the yen on Thursday on an earlier easing of trade fears, slipped against its Japanese peer after Trump's latest trade offensive.

The greenback was down 0.3 per cent at 107.060 yen, pulling back from 107.490, its highest since March 1.

The dollar had risen to a one-month peak versus the yen, bolstered by Wall Street's bounce on Thursday when the United States appeared to signal a willingness to resolve the trade dispute.

The yen, a perceived safe-haven currency, is often sought in times of market turmoil and political tensions.

The dollar dipped 0.1 per cent to 0.9624 Swiss franc, another safe-haven currency.

The euro rose 0.1 per cent to US$1.2251.

Beyond the trade turmoil, financial markets are focused on Friday's U.S. non-farm payrolls report, which could determine the pace of future Federal Reserve interest rate rises and consequently the dollar outlook.