Asian markets were roiled on Monday as the shockwaves from former U.S. President Donald Trump’s sweeping global tariff plan continued to ripple across the world. Investors dumped equities amid fears of a fresh trade war, currency volatility, and further economic disruption, pushing major indices sharply into the red.
Market Overview
Stocks across Asia saw heavy selling pressure in early trade:
- Nikkei 225 (Japan) fell 2.8%, its biggest one-day loss in months
- Hang Seng (Hong Kong) dropped 3.2%
- Shanghai Composite (China) lost 2.5%
- Kospi (South Korea) slid 2.1%
- ASX 200 (Australia) declined 1.7%
The broader MSCI Asia ex-Japan index was down 2.6%, reflecting widespread market panic.
What Triggered the Selloff?
Trump’s announcement of a 10% baseline tariff on all imports — with even higher rates for certain countries — has spooked global investors. The move is being seen as the beginning of a new era of economic protectionism that could seriously impact global trade flows and multinational businesses.
Analyst Reactions
“This is worse than anything we’ve seen since the early days of the U.S.-China trade war,” said Hiroshi Takashi, a senior analyst at Nomura Holdings. “Markets are now pricing in a full-scale global slowdown.”
Global Impact
- U.S. Futures also tumbled, with Dow Jones futures down over 800 points, and S&P 500 futures shedding more than 2%.
- European markets were poised to open lower as well, with Germany’s DAX and France’s CAC 40 indicating declines of over 1.5%.
- Gold prices surged, as investors fled to safe havens. Spot gold crossed $3,150/oz, nearing record highs.
Currency and Commodities
- The Japanese Yen, often seen as a safe haven, strengthened against the dollar, hitting ¥145.20.
- Crude oil prices fell amid concerns that tariffs will dampen global demand, with Brent crude slipping 1.9% to $85.70 per barrel.
What It Means for India and Emerging Markets
Emerging markets, particularly India, are vulnerable to such global shocks:
- GIFT Nifty signals a gap-down opening of over 350 points
- The Indian rupee may face depreciation pressure due to global outflows
- Export-heavy sectors and import-dependent industries may both suffer
What’s Next?
Markets will closely monitor:
- Any retaliatory moves by other countries
- Comments from central banks like the Federal Reserve or RBI
- Further policy announcements from Trump’s team
Related Links:
This escalating tariff turmoil marks one of the biggest geopolitical risks for global markets in 2025. Stay tuned for more real-time updates as the situation unfolds.
