Asian Markets Tumble as U.S. Tariff Announcement Sparks Global Sell-Off
Source: DairyNews.today
Major Asian stock indices fell sharply on Wednesday, rattled by investor concerns over a potential global recession following the imposition of sweeping new U.S. tariffs.
In Tokyo, the Nikkei 225 dropped 8.8% in early trading to 30,792 points — marking its steepest single-day decline since October 2023. The broader Topix index also sank more than 8% amid heightened market volatility, The Guardian reported.
Trading on South Korea’s Kospi index was temporarily halted after a sudden plunge in share prices triggered circuit breakers, reflecting broader fears about the economic impact of the new trade measures.
In Hong Kong, the Hang Seng Index (HSI) slid over 9% to 20,700 points, while mainland China’s CSI 300 index lost nearly 5%. Yields on China’s 10-year government bonds declined by 10 basis points, nearing historic lows, according to Bloomberg.
The sharp sell-off follows an unexpected move by U.S. President Donald Trump on April 2, imposing tariffs on imports from more than 200 countries and territories. The new duties include a 20% levy on goods from the European Union, 34% on Chinese imports, and 46% on Indian products.
The announcement triggered a massive sell-off on Wall Street, with the S&P 500 plunging 10.5% and erasing approximately $5 trillion in market capitalization.
Notably, Russia was excluded from the tariff list. According to the White House, the decision was linked to ongoing negotiations with Moscow and Kyiv aimed at resolving the conflict in Ukraine.
In a curious addition, the White House confirmed that the remote Australian territories of Heard and McDonald Islands — inhabited only by penguins — were subject to a 10% tariff, citing their status as Australian territory.
Trading on South Korea’s Kospi index was temporarily halted after a sudden plunge in share prices triggered circuit breakers, reflecting broader fears about the economic impact of the new trade measures.
In Hong Kong, the Hang Seng Index (HSI) slid over 9% to 20,700 points, while mainland China’s CSI 300 index lost nearly 5%. Yields on China’s 10-year government bonds declined by 10 basis points, nearing historic lows, according to Bloomberg.
The sharp sell-off follows an unexpected move by U.S. President Donald Trump on April 2, imposing tariffs on imports from more than 200 countries and territories. The new duties include a 20% levy on goods from the European Union, 34% on Chinese imports, and 46% on Indian products.
The announcement triggered a massive sell-off on Wall Street, with the S&P 500 plunging 10.5% and erasing approximately $5 trillion in market capitalization.
Notably, Russia was excluded from the tariff list. According to the White House, the decision was linked to ongoing negotiations with Moscow and Kyiv aimed at resolving the conflict in Ukraine.
In a curious addition, the White House confirmed that the remote Australian territories of Heard and McDonald Islands — inhabited only by penguins — were subject to a 10% tariff, citing their status as Australian territory.
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