On Wednesday morning (9 April, 9:18 AM, GMT+7, Bangkok time), indices in Asia Pacific declined across the region as investors prepared for the implications of country-specific tariffs set to be enforced by U.S. President Donald Trump.
Adding to the baseline duty of 10% initiated last Saturday, additional tariffs are poised to be enforced just after midnight in the U.S. Notably, the White House officially verified that Chinese goods will bear a collective tariff rate of 104%, intensifying the trade dispute between the two nations.
Meanwhile, traders are also focusing on the Reserve Bank of India’s meeting outcomes expected later in the day. Projections from economists polled by Reuters indicate a second consecutive rate cut, which would lower India’s policy rate to 6%.
Japan’s NIKKEI plunged by 2.7% to 32,121.93. South Korea’s KOSPI fell by 0.56% to 2,321.13, and Australia’s ASX 200 slumped by 1.12% to 7,425.9.
As for stocks in China, Shanghai’s SSEC slid by 0.69% to 3,123.79. Hong Kong’s HSI plummeted by 1.82% to 19,760.39, and Shenzhen’s SZI dipped by 0.17% to 9,408.9.
Meanwhile, the US stock markets edged down on Tuesday as the Dow Jones Industrial Average (DJIA) shrank by 0.84% to 37,645.59. NASDAQ lost 2.15% to 15,267.91, and S&P 500 contracted by 1.57% to 4,982.77. VIX soared by 11.39% to 52.33.
As for commodities, oil prices settled lower on Tuesday, reaching a four-year low, as market participants factored in a higher chance of a recession due to the escalating trade tensions between the United States and China. The U.S. is set to implement a 104% tariff on Chinese goods after Beijing did not remove its retaliatory tariffs on U.S. goods by the deadline, prompting the additional 50% increase in tariffs. Brent futures decreased $1.39 or 2.16% to $62.82 a barrel, and the West Texas Intermediate (WTI) dropped $1.12 or 1.85% to $59.58 per barrel.
This morning, Brent futures declined $1.77 or 2.82% to $61.05 a barrel, and the WTI diminished $1.92 or 3.22% to $57.66 per barrel.
Meanwhile, gold futures surged 1.04% to $3,021.3 per Troy ounce.
