In free fall its stock markets Asiaas the consequences of the duties US President Donald Trump are still causing turbulence around the world. The main indicators, from Shanghai to Tokyo and from Sydney to Hong Kong, were dragged on Monday (07.04.2025). “It’s a massacre,” said one BBC analyst.
As areas that produce many products sold worldwide, Asian countries are directly affected by tariffs. In addition, there is widespread fear that a world trade war could cause a slowdown or even recession in the Asia economy.
Donald Trump seemed to downgrade panic on international stock markets Due to the storm of customs duties he imposed, likening the situation to taking a “medicine” in this case, in this case to cure the pathogens of the American economy.
“Sometimes you have to take your medicine to be well”, The US president told reporters on the presidential aircraft on Sunday, while electronic transactions are heralded a new spectacular fall of Wall Street today while In Asia and Oceania, stock market markers record new violent falls.
Bleeding Asian stock markets
Japan’s Nikkei 225 index closed with a drop of 7.8%, the ASX 200 in Australia lost 4,2% and the Kospi In South Korea closed 5,6% lower.
The falls on the continental Chinathe Hong Kong and Taiwan They intensified as investors realized the major falls in other markets on Friday when they were closed due to holidays.
The index Shanghai Composite closed with a fall 7,3%, while the index Taiwan Weighted He wrote 9.7%. The index Hang Seng recorded losses 12,5%.
“Duties feed the expectations for inflation and recession,” said Julia Lee, head of FTSE Russell, a subsidiary of the London Stock Exchange Group.
Increasing the risk of recession in the US
OR Goldman Sachs increased her estimation of recession in the US media In the next 12 months to 45%, from 35%, as the investment bank reduced its forecasts for the country’s economic growth.
Other Wall Street companies have also reviewed their recession forecasts after Trump’s announcement of duties. JPMorgan now estimates a 60% chance of recession in the US and worldwide.
A significant deceleration on the US economy would have a serious impact on Asian exports, as the US is one of the most important markets for products in the region.
“Asia is the highest burden of increasing US duties. While there is room for negotiations, a new higher duty regime has come to stay, “said Qian Wang, head of Asia-Pacific’s Investment Company, Vanguard.
“This is negative for the world and Asian economy, especially for small open economies, both in the short and in the long run.”
Countries from Vietnam to Bangladesh are largely dependent on the US.
Trump’s announcement last week included 46% duties in Vietnam and 37% in Bangladesh.
Several large American chips, such as the Nike and the Mul
lulhemonproduce products in Vietnam.
The Bangladesh extracts a year of value. US $ 8.4 billion (£ 6.5 billion) in the US, according to the Bangladesh Garment Manufacturers and Exmorters Association.
“Asia is likely to be disproportionately affected by this unrest because it is sending more exports to the US than to other markets,” said Frank Lavin, former US Deputy Minister of Commerce.
On Friday, global upheaval on the financial markets worsened after China’s response to Trump’s duties.
All three main US markers dropped over 5%, with S&P 500 to fall almost 6%, closing the worst week for the US market by 2020.
In the UK, the index FTSE 100 Nearly 5% browned – the biggest decline in the last five years, while stock markets in Germany and France recorded similar losses.
Lee also stressed that the global stock market decline seems to continue: “The lowest course of US future contracts shows yet another difficult session on Wall Street tonight.”
World stock markets have lost trillions of value since Trump has announced extensive new 10% duties on product imports – including important commercial partners such as China, the European Union and Vietnam – to face much higher duties.
It is noted that in European stock exchanges are also free to decline Today at the start of transactions, following the tariff storm launched by the US president and Chinese retaliation. Its stock market Frankfurt fell 7,86% after recording a dip of more than 10% at the beginning of the meeting. The Paris retreated 6,19%, the London 5,83% and Milan 2,32%.
FULLERS BY BBC