Asian stock markets tumbled on Monday, tracking Wall Street’s weak close on Friday as concerns over US President Donald Trump’s upcoming tariffs rattled investors.
The most significant hit came from Japan, where the Nikkei 225 plunged 3.9%, leading the regional downturn.
Investors remain on edge as Trump prepares to unveil his “reciprocal” tariff policy later this week.
The measures, initially expected to target 10 to 15 countries with large trade imbalances, will now reportedly apply to all nations.
This broad-sweeping move has stoked fears of retaliatory actions and a slowdown in global economic growth.
Japan’s Nikkei crashes 4%
The Japanese market extended its losing streak, with the Nikkei 225 slumping 1,428.81 points, or 3.85%, to 35,691.52 in the morning session.
The index had crashed over 4% to hit an intraday low of 35,574.61.
Fears over the 25% tariffs on auto and auto parts imports set to take effect this week weighed heavily on Japan’s auto sector, with Toyota and Honda declining nearly 3% each.
Market heavyweight SoftBank Group lost over 5%, while Fast Retailing, the operator of Uniqlo, declined almost 4%.
Hong Kong and China stocks fail to rise
Hong Kong’s Hang Seng Index dropped 1.73% to 23,022.05.
On the mainland, the CSI 300 Index and the Shanghai Composite Index managed to eke out slight gains of 0.1% each.
Despite positive economic data from China, where the official purchasing managers’ index (PMI) for March rose to 50.5, market sentiment remained weak.
Non-manufacturing activity also improved, with its PMI climbing to a three-month high of 50.8.
However, these signs of recovery did little to offset broader concerns about trade disruptions and their impact on supply chains.
Broad losses across the region
The Australian market mirrored the selloff, reversing its previous session’s gains.
The S&P/ASX 200 index fell 1.6%, shedding 126 points to trade at 7,856.00, with earlier lows of 7,843.00.
South Korea’s benchmark Korea Composite Stock Price Index (KOSPI) has lost 71.85 points, or 2.81%, to 2,486.13.
Markets in Malaysia, India, Singapore, and Indonesia were closed for the Eid-ul-Fitr holiday.
Wall Street on Friday
Extending losses from the previous two sessions, US stocks tumbled on Friday, with major indices facing sharp declines throughout the day.
The Nasdaq led the drop, plunging 481.04 points, or 2.7%, to a six-month low of 17,322.99.
The S&P 500 fell 112.37 points, or 2.0%, to 5,580.94, while the Dow dropped 715.80 points, or 1.7%, to 41,583.90.
This pullback erased the market’s early-week gains, leaving the Nasdaq down 2.6% for the week, while the S&P 500 and Dow lost 1.5% and 1.0%, respectively.
Investor sentiment weakened amid concerns over the economic outlook following fresh inflation data.
While the Commerce Department’s report showed consumer prices rising in line with forecasts, core inflation edged slightly higher than expected.
The personal consumption expenditures (PCE) price index increased 0.3% in February, matching the previous two months and economist estimates.
The annual inflation rate held steady at 2.5%, reinforcing expectations of a prolonged restrictive stance from the Federal Reserve.
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