Asian stock markets witnessed a sharp sell-off on Friday, extending losses for a second straight session after U.S. President Donald Trump announced sweeping new tariffs on imports, fueling fears of a global economic slowdown.
Japan’s Nikkei 225 led the regional losses, plummeting over 2.4%, while Australia’s ASX 200 also dropped 2%, with both benchmarks falling to eight-month lows. Markets in South Korea, Singapore, and India also faced heavy selling pressure.
Trump’s Tariffs Rattle Global Markets
President Trump’s aggressive trade policy includes:
- A blanket 10% tariff on all U.S. imports starting April 5.
- Targeted tariffs of up to 49% on selected countries, including a total 54% tariff on Chinese goods when combined with existing duties.
These measures sparked global concerns over disrupted supply chains, rising inflation, and deteriorating international trade relations.
Asia’s Export-Heavy Economies Under Threat
Analysts warn that export-reliant economies like China, Japan, and South Korea are at significant risk. These nations rely heavily on U.S. demand, and the new tariffs could sharply reduce exports, investment, and corporate earnings.
UBS noted, “Southeast Asian economies, where many Chinese manufacturers have relocated, will likely face ripple effects from the reciprocal tariffs.”
Market Highlights by Country
- Japan: The Nikkei 225 tumbled nearly 3%, while TOPIX dropped 3.5%, approaching correction territory. A strengthening yen added further pressure on exporters.
- Australia: The S&P/ASX 200 slid 2% to an eight-month low, mirroring Wall Street’s overnight losses.
- South Korea: The KOSPI fell 1.5% amid political turmoil as the country’s Constitutional Court upheld President Yoon’s impeachment, citing his martial law declaration as unconstitutional.
- Singapore: The Straits Times Index dropped 2.8%.
- India: Futures for the Nifty 50 slipped 0.2% ahead of local market open.
Wall Street’s Collapse Deepens Asia’s Slide
The sell-off in Asia followed a brutal session on Wall Street:
- S&P 500 fell 4.8%, the biggest one-day drop in nearly five years.
- Nasdaq Composite plunged 6% as tech stocks led declines.
The global equity rout underscores investors’ flight to safety amid fears of a trade war escalation and global economic fallout.
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