Asia-Pacific markets fell sharply on Monday as investors braced for a new round of U.S. tariffs expected later this week. Concerns over trade policy and economic uncertainty weighed heavily on regional equities.
By 10:35 am AEDT (11:35 pm GMT), Australia's S&P/ASX 200 declined 1.6%, while South Korea’s Kospi 200 shed 2.6%. Japan’s Nikkei 225 led losses, dropping 3.8%.
Key economic releases showed weaker-than-expected results, with Japan's retail sales rising 1.4% year-over-year, falling short of market expectations for a 2% increase, while the country's industrial production climbed 2.5% month-over-month, slightly above the anticipated 2.3% rise.
Meanwhile, Reserve Bank of Australia policymakers are set to convene for a two-day policy meeting on Monday. The board's decision on whether to cut interest rates will be released at 2:30 pm AEDT on Tuesday.
According to the RBA rate tracker, market expectations for a 25-basis-point decrease to 3.85% stand at just 8%.
The sell-off in Asia followed a steep decline on Wall Street last Friday, as mounting concerns over U.S. trade policy and a weaker inflation outlook rattled investors.
The Dow Jones Industrial Average fell 715.8 points, or 1.7%, to close at 41,583.9. The S&P 500 dropped 2% to 5,580.9, marking its fifth weekly decline in the past six weeks. The Nasdaq Composite slumped 2.7% to 17,323.0, amid broad-based selling across technology stocks.
Among commodities, Brent crude oil fell 0.8% on Friday, trading at US$72.76 per barrel, as investors weighed concerns over slowing global demand. Spot gold surged 0.9% to an all-time high of US$3,085.35 per ounce.
Chinese equities also ended in the red, with the Shanghai Composite falling 0.7% to 3,351.3 and the CSI 300 dropping 0.4% to 3,915.2.
Hong Kong’s Hang Seng Index slipped 0.7% to 23,426.6, while India’s BSE Sensex edged down 0.3% to 77,414.9.
European markets mirrored the global downturn, with the FTSE 100 down 0.1% to 8,658.9. Germany’s DAX fell 1% to 22,461.5, while France’s CAC 40 declined 0.9% to 7,916.1.
