Asian stock markets suffered a major meltdown on Monday, triggered by heightened global trade tensions following a fresh round of US tariffs announced by President Donald Trump. The move rattled investor sentiment, sparking heavy sell-offs across key indices in the region.
Leading the plunge was Japan’s Nikkei 225, which nosedived by 5.79%, followed by Hong Kong’s Hang Seng index with a dramatic 10% loss. Taiwan’s benchmark index also took a significant hit, tumbling 9.61% in early trading.
China’s Shanghai Composite was down 6.5%, while South Korea’s KOSPI fell by 4.14%. Even Australia’s S&P/ASX 200, typically less sensitive to tariff news, declined by 3.82%, highlighting the widespread panic gripping Asia-Pacific markets.
The sell-off wasn’t limited to Asia. US stock futures also showed signs of distress, with Dow Jones futures slipping 2.22%, indicating a weak start for Wall Street.
Analysts attribute the sharp declines to escalating fears of a global trade slowdown, as Trump’s tariff announcement cast a shadow over export-driven Asian economies. “The new tariff measures have raised deep concerns over global growth prospects and corporate profitability,” said an analyst.
In a statement to reporters, Trump defended the move, saying, “…I don’t want anything to go down. But, sometimes, you have to take medicines to fix up things,” implying that the tariffs were a necessary corrective step.
Indian markets weren’t immune to the global wave of selling. The Sensex slumped by around 2,100 points last week, and Gift Nifty Futures are pointing to another negative start for the Indian markets.
Vinod Nair, Head of Research at Geojit Financial Services, noted that investors are closely watching for countermeasures from global trade partners. “This cautious sentiment is reflected in the sustained rally in gold and bond prices, underscoring a pronounced shift toward safe-haven assets,” he said.
With uncertainty in global trade on the rise, investors are bracing for more turbulence in the days ahead.
