Bloodbath in Asian markets as Trump tariffs trigger global rout

Asia-Pacific markets tumbled on Monday as escalating fears of a global trade war triggered a deep sell-off across the region, with US President Donald Trump’s sweeping tariffs fuelling investor panic and a shift away from risk assets.

Hong Kong’s Hang Seng Index led regional losses, plummeting 10.37% in early trade, while the Hang Seng Tech Index collapsed 12.11%, driven by sharp falls in shares of Sunny Optical, BYD Electronic, and Lenovo.

In mainland China, the CSI 300 dropped 6.31%, with sentiment dampened further by China’s retaliatory tariffs on US goods.

A commentary in the Communist Party’s official newspaper, the People’s Daily, said the country had “plenty of countermeasures” and was “ready for prolonged pressure”.

Japan’s Nikkei 225 slumped 6.2% to hit an 18-month low, while the broader Topix dropped 6.5%.

Trading in futures was temporarily halted after circuit breakers were triggered. The Japanese yen strengthened slightly to 146.32 against the US dollar, reflecting a risk-off shift.

Taiwan’s Taiex index shed 9.62%, hitting its lowest level since March 2024. Shares in major exporters like TSMC and Hon Hai Precision were halted after triggering circuit breakers. Although Taiwan stocks plummet, its president still pledges 'golden age' with US

South Korea’s Kospi fell 4.74% while Australia’s ASX 200 extended losses to 3.87%, entering correction territory. Mining and gold stocks bore the brunt, with companies like Evolution Mining, Kingsgate, and BHP Group down between 5% and 7%.

India’s markets also plunged, with the Nifty 50 and Sensex dropping 4.01% and 3.24% respectively at open. Major conglomerates, including Tata Motors, Reliance Industries, and Adani Group companies, suffered sharp declines.

Singapore’s Straits Times Index sank 6.26%, reaching a 52-week low. Losses were broad-based, with top decliners including Seatrium and Venture Corporation.

Elsewhere in Southeast Asia, Malaysia’s KLCI fell 5.29%, Thailand’s SETI lost 3.15%, and the Philippines’ PSI dropped 3.14%.

Bond yields in Japan fell, with the 5-year yield touching 0.761% and the 10-year yield hovering near a three-month low at 1.405%, as investors sought safety in government debt.

Spot gold, which briefly surged past $3,100 per ounce last week, plunged below $3,000 on Monday as investors sold bullion to cover losses across equity markets.

Meanwhile, US oil prices fell below $60 per barrel, with West Texas Intermediate trading at $59.74, its lowest since April 2021.

US stock futures indicated further weakness ahead, as investors digested Friday’s massive losses. The Dow Jones fell 5.5%, the S&P 500 lost nearly 6%, and the Nasdaq dropped 5.8%, officially entering bear market territory.

Despite the turmoil, Trump’s top economic advisers brushed aside recession fears, saying tariffs would remain in place. Trump himself told reporters aboard Air Force One on Sunday that he was open to talks but emphasised resolving trade imbalances first.