Asian markets faced a sharp decline on Monday, deepening a global stock market rout spurred by the escalating trade war between Asian markets faced a sharp decline on Monday, deepening a global stock market rout spurred by the escalating trade war between the United States and China. Japan’s Nikkei index dropped over 8% at the opening, while the broader Topix index was down 6.5%. In China, the Shanghai Composite lost 6.7%, and the CSI300 index fell by 7.5%. Hong Kong’s Hang Seng Index plunged more than 9%, with major tech companies like Alibaba and Tencent suffering losses of over 14% and 10%, respectively. South Korea’s Kospi index dropped more than 4.8%, triggering a circuit breaker to prevent panic selling.
The sell-off in Asia mirrored the steep declines seen in U.S. markets, which had already wiped out $5.4 trillion in market value. This follows China’s decision to retaliate against the latest round of U.S. tariffs by imposing a hefty 34% tariff on all U.S. goods. The move sparked fears of an escalating trade war, and market observers are bracing for broader retaliation from other countries. U.S. stock futures also plunged on Sunday evening, indicating further losses ahead.
China’s state-run People’s Daily published a firm response, emphasizing the nation’s resilience in the face of what it called “U.S. tariff bullying.” The commentary reiterated China’s readiness to counter any aggressive trade actions, asserting that the country has honed its strategies after years of trade conflict with the U.S. It painted a picture of a nation well-equipped to handle the economic pressure imposed by Trump’s tariff regime.
The widespread market slump also extended to commodities. Oil prices continued their downward slide, with Brent crude dropping 2.4% and U.S. West Texas Intermediate crude falling 2.5%. Even traditionally safe-haven assets like gold were affected, seeing a 4% decline to around $3,030 an ounce. As global investors are rattled by the ongoing tariff war, U.S. stocks are on track to open sharply lower on Monday, pushing the S&P 500 toward a potential bear market, signaling further uncertainty for the global economy.
Source: business day