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Asia Stocks Plunge as Trump’s Trade War Escalates — Japan, China Lead Sell-Off

Asian markets suffered a massive blow on Monday, extending sharp losses after U.S. President Donald Trump’s sweeping tariff measures intensified fears of a global economic slowdown. Major indexes across Japan, China, Hong Kong, South Korea, Singapore, and Australia witnessed steep declines, rattling investor confidence across the region.

Global Market Panic as Trump Tariffs Bite

Trump’s latest round of tariffs — unveiled on April 2 — includes a 10% blanket duty on all imports and targeted tariffs of up to 49% on key trading partners, including China, the European Union, and Japan. The escalation triggered tit-for-tat retaliation from China, which slapped a 34% tariff on various American exports, including agriculture, energy, and tech products.

Speaking on Sunday, President Trump defended the move, stating that these tariffs were “the only way to fix major trade deficits” and signaled no plans to roll them back.

These developments have stoked fears of a deepening trade war, shaking financial markets worldwide and pushing investors toward safe-haven assets like gold.

Asian Markets Hit Multi-Month Lows

  • Japan’s Nikkei 225 index crashed 9% intraday, hitting a 17-month low as of Monday morning. The TOPIX index also plunged over 8%, underscoring growing concerns about Japan’s export-dependent economy.
  • China’s CSI 300 and Shanghai Composite both fell nearly 6%, marking a six-month trough as tariffs dent the growth outlook in the world’s second-largest economy.
  • Hong Kong’s Hang Seng index plummeted over 9%, its worst performance since February.
  • Australia’s ASX 200 tumbled 6.5%, touching a 12-month low, as commodity-related sectors braced for demand shocks.
  • South Korea’s KOSPI, Singapore’s Straits Times, and the Philippines’ PSEi Composite lost between 4% to 7%, further highlighting regional vulnerability.
  • India’s Nifty 50 futures were also down 1%, indicating a bearish start to the week.

Wall Street Selloff Fuels Asia’s Slide

The Asian market carnage followed a disastrous close on Wall Street Friday, where the S&P 500 plunged 4.8%, the NASDAQ lost 6%, and the Dow Jones dropped nearly 5%. These were the worst single-day losses in nearly five years, and U.S. stock futures continued to fall sharply in early Asian trade on Monday.

Fears of another “Black Monday” — akin to the 1987 global stock market crash — are beginning to surface among analysts and investors, with markets bracing for more volatility.

Trade War Impact: A Global Economic Risk

The fallout from Trump’s tariffs is expected to be severe, particularly for export-heavy economies in Asia. Higher import costs and retaliatory duties threaten to disrupt global supply chains, dampen demand, and curb corporate profits.

Japan, China, and South Korea, all heavily reliant on U.S. trade, stand to lose the most if the trade tensions continue to escalate.

With no clear resolution in sight and further tariffs expected on April 9, global markets remain on high alert for what could become the most severe trade war in modern history.

📌 Stay updated with the latest market news, currency forecasts, and global economic updates on www.dailyforex.pk
Yasher Rizwan

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Published by
Yasher Rizwan
3 months ago

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