New Delhi [India], April 7 : Asian stock markets witnessed a major sell-off on Monday after US President Donald Trump announced a new round of tariffs. The markets opened with heavy selling pressure, reflecting growing fears over the impact of the tariffs on global trade and economic growth.
Japan's Nikkei 225 index dropped sharply by 5.79 per cent, leading the decline across the region. Hong Kong's Hang Seng index followed with a steep fall of around 10 per cent.
Taiwan's Taiwan Weighted Index also saw a major slide, losing 9.61 per cent in early trade. South Korea's KOSPI index was down by 4.14 per cent, while China's Shanghai Composite fell by 6.5 per cent at the time of filing this report.
Australia's benchmark index S&P/ASX 200 also registered a decline of 3.82 per cent, indicating that the sell-off was not limited to major manufacturing economies alone but had spread across the Asia-Pacific region.
The impact of Trump's tariff announcement was also visible in the American markets. Futures of the US stock index Dow Jones were down by 2.22 per cent, suggesting a negative start for the US markets as well.
Experts believe that the continued sell-off in global equity markets is due to the rising uncertainty caused by the tariffs. The new tariff measures have cast dark clouds over the global economic outlook. Major Asian economies, which depend heavily on exports to the U.S., are expected to be hit hard once the tariff implementation begins.
Investors are worried that global trade could slow down significantly, affecting corporate earnings and economic growth worldwide. The market reaction reflects growing concerns among investors about the future of international trade and the health of the global economy.
As the US stock markets tumbled after the imposition of retaliatory tariffs, US President Donald Trump said, "...I don't want anything to go down. But, sometimes, you have to take medicines to fix up things."
Last week Indian stock indices also closed the week on a sour note, weighed down by the Trump reciprocal tariffs and the uncertainties surrounding them. The Sensex slumped about 2,100 points this week.
"Investors are expected to closely monitor any countermeasures implemented by global trade partners, which could further exacerbate geopolitical and economic uncertainty. This cautious sentiment is reflected in the sustained rally in gold and bond prices, underscoring a pronounced shift toward safe-haven assets," said Vinod Nair, Head of Research, Geojit Investments Limited.
The Gift Nifty Futures are indicating a negative start for Indian stock markets also.
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