Global markets plunge: Global stocks have been plunging on fears of a trade war and economic slowdown since US President Donald Trump imposed tariffs.
Global markets plunge, Hong Kong’s Hang Seng fell more than 13 percent on Monday, its biggest drop in three decades.
Taiwan’s TaiX fell 9.7 percent, its biggest drop on record, while Japan’s Nikkei 225 closed down 7.83 percent.
Singapore’s Straits Times Index fell more than seven percent, according to Al Jazeera TV. South Korea’s KOSPI fell more than five percent and Australia’s ASX 200 closed down more than four percent. European markets also continued to sell off, with London’s FTSE 100 and Frankfurt’s DAX down five percent and seven percent respectively in early trade.
US stocks are expected to suffer further losses as Wall Street reopens, having lost $6 trillion in market value during last week’s two-day decline. The US began imposing a basic tariff of 10% on imports on Sunday, while tougher tariffs ranging from 11% to 50% will take effect on dozens of countries on Wednesday. The steep tariffs will hit both US rivals and allies.
China, the US’s main strategic rival and third-largest trading partner, faces a 34% tariff, while the European Union, Japan and South Korea are set to impose tariffs of 20 to 25%. China announced retaliatory measures last week, including a 34% tariff on all US imports and restrictions on exports of some key minerals, while the EU is drawing up a list of US imports that will be subject to higher duties.
J.P. Morgan last week raised the odds of a U.S. recession to 60 percent, while S&P Global put it at 30 to 35 percent. “The magnitude and disruptive impact of U.S. trade policies, if sustained, would be enough to push a still-healthy U.S. and global expansion into recession,” Bruce Kasman, head of economic research at J.P. Morgan, said in a note.