Markets across the Asia-Pacific region extended steep declines on Monday as fears of a global trade war intensified following the announcement of sweeping United States tariffs by President Donald Trump.
By 11:35 am AEST (1:35 am GMT), Australia’s S&P/ASX 200 fell 5.2%, and South Korea’s Kospi 200 shed 4.3%. Japan’s Nikkei 225 index slumped 5.9%, its sharpest single-day drop since August 2024, prompting a temporary suspension in futures trading after circuit breakers were triggered.
Investor concerns mounted as hopes faded for successful negotiations that might soften or delay the tariffs, which are due to take effect on April 9. U.S. futures were also sharply lower, reflecting expectations of another volatile session ahead on Wall Street.
Despite growing concerns over the economic impact, senior U.S. officials sought to downplay market reactions, insisting that the new tariffs would remain in place regardless of how financial markets respond.
Commerce Secretary Howard Lutnick reiterated on Sunday that the measures were non-negotiable for the time being.
The sell-off follows a brutal session on Wall Street last Friday, when China retaliated with a 34% tariff on all U.S. imports. The Dow Jones Industrial Average plunged 2,231.1 points, or 5.5%, to close at 38,314.9 - its worst drop since June 2020. The S&P 500 fell 6% to 5,074.1, the steepest decline since the early days of the pandemic in March 2020.
Meanwhile, the tech-heavy Nasdaq Composite dropped 5.8% to 15,587.8, taking its losses from the December record to over 22%, firmly placing it in bear market territory. Tech firms with heavy exposure to Chinese markets and supply chains have been particularly hard hit.
Commodity markets also reflected the mounting uncertainty. Brent crude slumped 6.5% to US$65.58 per barrel, while spot gold fell 2.5% to US$3,037.89 per ounce as traders scrambled for liquidity.
Chinese and Hong Kong equity markets remained closed for a public holiday, while India’s BSE Sensex lost 1.2% to 75,364.7.
The market turmoil was not confined to Asia. European indices also fell sharply on Friday, with the UK’s FTSE 100 down 5% at 8,055.0. Germany’s DAX dropped 5% to 20,641.7, and France’s CAC 40 declined 4.3% to 7,275.0.
