The U.S. futures markets also closed in the red, with the S&P 500 losing 4.2%, while the Dow Jones Industrial Average fell by 3.5%. The Nasdaq index dropped 5.3%.
Trading in Tokyo opened with significant losses, as Japan’s leading index, the Nikkei, plunged nearly 8% immediately after the market opened. An hour later, it was down 7.1%, at 31,375.71. The second major Japanese index, the Topix, also opened 8.64% lower at the beginning of the session.
South Korea’s Kospi opened with a 5.5% drop to 2,328.52, while Australia’s S&P/ASX 200 began trading 6.3% lower at 7,184.70.
In Taipei, the benchmark Taiex index fell 9.8% just minutes after opening, losing 2,054 points to 19,243. Prominent tech companies, including Hon Hai (Foxconn), the world’s largest electronics manufacturer, and Taiwan’s TSMC, a global leader in chip manufacturing, also recorded losses nearing 10%.
Similarly, oil prices continued their downward trajectory, with the U.S. crude benchmark dropping 4%, or $2.50, to $59.49 per barrel. Brent crude, the international standard, decreased by $2.25 to $63.33 per barrel.
The currency markets also saw significant movement, with the U.S. dollar falling to 145.98 Japanese yen from 146.94 yen. The yen is often perceived as a safe haven during turbulent times. The euro saw a slight increase from $1.0962 to $1.0967.
On Friday, Wall Street registered its worst performance since the COVID-19 pandemic, with the S&P 500 declining by 6% and the Dow dropping 5.5%. The Nasdaq composite fell 5.8%.
Losses accelerated after China matched the substantial increase in tariffs announced by Trump on the previous Wednesday, heightening the stakes in a trade war that could potentially lead to a global economic recession.
Even a surprisingly positive U.S. labor market report released on Friday, typically the economic highlight each month, couldn’t halt the market downturn. Of the 500 companies in the S&P index, all but 14 fell that day.
China’s response to U.S. tariffs led to an immediate increase in global market losses. Beijing’s Ministry of Commerce announced that it would impose a 34% tariff on all U.S. imports starting April 10, mirroring the 34% tariff the U.S. placed on Chinese imports, among other measures.
The United States and China are the two largest economies in the world.
Trump declared on Wednesday that tariffs would be imposed on countries globally. Regarding the tariffs, the U.S. president stated that they would “stimulate unprecedented growth” and “faster than anticipated.”
For the European Union, Trump mentioned that the tariff would be 20%, citing that the EU generally taxes U.S. goods at an average of 39%, whereas South Korea, for instance, taxes them at nearly 50% on average. Tariffs imposed by the United States on South Korean products will be 26%.
