Stocks in Asia opened mostly lower on Tuesday as Trump’s tariffs will go into effect at midnight, sparking fear among global trading partners of an intense trade war.
The Nikkei 225 took a hit, falling 2.07% as Asian markets showcased a patchwork of performances. South Korea’s Kospi index managed a slight ascent, climbing 0.27% amid a session marked by volatility.
Over in Hong Kong, the Hang Seng index stumbled, opening with a 1.90% decrease, while China’s Shanghai Composite witnessed a 0.51% dip. Investors are particularly attuned to developments in Chinese equities, with eyes set on the country’s annual parliamentary meetings known as the “Two Sessions,” set to commence today.
Meanwhile, Australia’s S&P/ASX 200 similarly faced pressure, down by 0.90%.
During Trump’s first 100 days in office, his tariff agenda included several significant trade measures. On March 4, an additional 10% tariff was imposed on China, along with a 25% tariff on imports from Canada and Mexico. Then, on March 12, a 25% tariff was applied to steel and aluminum imports.
By April 2, tariffs were extended to the European Union, affecting automobiles, semiconductor chips, and pharmaceutical products, all at a rate of 25%. Additionally, on the same day, global reciprocal tariffs were introduced, further escalating trade tensions worldwide.
The Dow Jones Industrial Average experienced a significant downturn on Monday, sliding 649.67 points or 1.48%, landing at 43,191.24. This loss mirrored declines across major U.S. stock indices, as the S&P 500 shed 104.78 points or 1.76%, hitting 5,849.72, while the Nasdaq Composite tumbled more dramatically, losing 497.09 points or 2.64%, to close at 18,350.19.
Adding to economic jitters, oil markets responded to the dual pressure of potential implications from U.S. tariffs on worldwide economic growth and the anticipated increase in oil production by OPEC+ in April.
These factors drove oil prices to a 12-week low. Brent crude futures receded $1.19 or 1.6%, ending at $71.62 per barrel. Similarly, U.S. West Texas Intermediate (WTI) crude saw a decline of $1.39 or 2.0%, settling at $68.37 a barrel. The combination of these elements underscores a complex landscape for both investors and the global energy market.
Meanwhile, gold prices jumped upwards by over 1% on Monday. This upsurge is attributed to the downturn of the dollar and escalating demand for the safe-haven asset amid apprehensions surrounding U.S. President Donald Trump’s tariff strategies. Spot gold saw an increase of 1.2%, bringing its value to $2,893.44 an ounce.
