MercoPress. South Atlantic News Agency

Early dawn stock markets show significant declines

Donald Trump's tariffs set stock markets worldwide on a slide

Australia's and most Asian stock markets experienced significant declines early Monday amid the global tariff war triggered by U.S. President Donald Trump. The Hang Seng Index in Hong Kong dropped 9.1% to 20,778.10, with a peak intraday fall of 10.2%, marking its worst day in over a year. Across the Asia-Pacific, 11 of 14 equity markets hit 52-week lows. In mainland China, the CSI 300 Index fell by 7.6%, while the Shanghai and Shenzhen Composite Indexes dropped by 7.4% and 9.8%, respectively. Japan’s Topix and Nikkei indexes also slumped, by 9.6% and 6.5%, respectively.

The sell-off followed Trump’s imposition of a 34% tariff on Chinese imports, including those from Hong Kong, alongside existing levies from 2018. Additional tariffs included 25% on South Korean goods, 20% on EU exports, and a 10% baseline on all imports, sparking fears of a broader trade war.

South Korea’s KOSPI sank over 4%, with the won nearing a 16-year low against the dollar. The Bank of Korea warned of prolonged market volatility due to Trump’s tariffs, including a 25% duty on South Korean goods effective Wednesday and a 10% baseline tariff on all imports from Saturday, urging swift market stabilization measures.

Taiwan’s TAIEX fell below 20,000 points, losing over 2,000 points, below 20,000, with major stocks like Taiwan Semiconductor, Hon Hai, and MediaTek hitting daily loss limits, alongside heavy losses in AI shares, on the first trading day after the Qingming Festival.

And while Australia’s ASX 200 dropped more than 6%, European brewers fear significant losses in the new scenario as Wall Street braces for further recession and escalating trade tensions. Holders are rapidly selling off their stock.

Monday is expected to be a hectic day for traders worldwide.