Hong Kong, China- Asian markets faced a sharp decline on Monday as a result of US President Donald Trump’s trade war policies, sparking a global stocks rout. The Japanese benchmark Nikkei plummeted by more than 8% shortly after opening, marking the first time it fell below the 33,000 level since August 2024. The broader Topix index also experienced significant losses, trading more than 7.5% lower.
Japanese Prime Minister Shigeru Ishiba expressed concerns on Monday about the impact of US tariffs on Japan, stating that the government will continue to urge President Trump to lower tariffs but acknowledging that results may not be immediate. Ishiba emphasized the importance of taking measures to minimize the economic blow from the tariffs, including offering funding support for domestic firms and implementing job protection strategies.
Following two days of substantial declines in Wall Street stocks, Asian markets have been tracking the trend, exacerbating the situation. Global investors have shown resistance to President Trump’s tariff regime, which has already begun to take effect. China retaliated by imposing a 34% tariff on all US goods, leading to fears of a worsening trade war and economic consequences.
US stock futures plunged on Sunday evening, reflecting the market’s concerns about the ongoing trade tensions. President Trump, however, expressed confidence in the strength of the country, stating that the market’s behavior is unpredictable but emphasizing the resilience of the nation.
In the face of mounting economic pressures, US stocks are poised to open significantly lower on Monday, prompting fears of a potential bear market – a 20% decline from its peak. South Korea’s Kospi and Taiwan’s Taiex also experienced substantial losses, with trading halts triggered by panic selling.
The benchmark ASX 200 index in Australia and New Zealand’s NZX 50 index both faced declines, reflecting the broader trend in the Asian markets. This evolving situation will continue to be monitored and updated as developments unfold.