NEW DELHI: Asian stock markets nosedived on Monday as global financial turmoil deepened, triggered by US President Donald Trump’s sweeping tariffs and China’s retaliatory measures. With fears of a full-blown trade war mounting, US futures pointed to further losses on Wall Street, compounding Friday’s historic meltdown.
Tokyo’s Nikkei 225 fell 7.1% in early trade after briefly plunging nearly 8%, while Taiwan’s benchmark index slumped close to 10%. South Korea’s Kospi lost 5.5%, Australia’s ASX 200 dropped 6.3%, and Singapore tumbled 8.5%, signalling widespread panic across Asia. The ASX 200 also hit its lowest level in almost 15 months.
The sharp sell-off followed Wall Street’s worst single-day performance since the Covid-19 pandemic. On Friday, the S&P 500 fell 6%, the Dow Jones Industrial Average dropped 5.5%, and the Nasdaq slid 5.8%, erasing trillions in market value.
Analysts estimate that over $9 trillion has been wiped off global stock markets in just two days, drawing comparisons to the 2008 financial crisis. Investor confidence has evaporated following China’s decision to impose a 34% tariff on all US imports beginning April 10, intensifying fears of prolonged economic disruption .
Meanwhile, US crude dipped below $60 per barrel for the first time since April 2021, and the dollar weakened to 145.98 yen, indicating a rush towards traditional safe-haven assets.
Despite the mounting turmoil, Donald Trump remained unapologetic and said, “Sometimes you have to take medicine to fix something,” denying he was deliberately fuelling a market collapse. Speaking aboard Air Force One, he insisted countries were eager to negotiate: “They’re dying to make a deal.”
The latest wave of chaos was set off after Beijing retaliated Friday, matching Trump's tariffs with its own 34% levy on all US imports starting April 10. China’s Commerce Ministry called it a direct response to the US's aggressive trade measures.
Senior officials in Washington struck a defiant tone even as they confirmed outreach from dozens of countries. “More than 50 countries have reached out to the president to begin a negotiation,” said Kevin Hassett, head of the White House National Economic Council, noting that Vietnam had already requested a 45-day delay on tariffs.
Treasury Secretary Scott Bessent added, “At this moment he’s created maximum leverage for himself... I think we’re going to have to see what the countries offer, and whether it’s believable.”
Jerome Powell, Chair of the US Federal Reserve, warned the trade war could lead to “higher inflation and lower growth,” signalling limited room for interest rate cuts. Trump, however, fired back: “CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!”
Israeli Prime Minister Benjamin Netanyahu, whose country was hit with 17% tariffs, was due in Washington Monday for emergency talks. UK Prime Minister Keir Starmer, in an op-ed, warned that “the world as we knew it has gone,” and that future stability would depend on “deals and alliances.”
Markets in Saudi Arabia, which remained open on Sunday, were also battered—plunging 6.78%, the worst daily loss since the pandemic. Australia’s Prime Minister Anthony Albanese said his government was bracing for more turmoil. “You can’t change global events. What you can do is prepare for them,” he said.
Economists have warned that tariffs could trigger price hikes at home, a charge the Trump administration denies. “I don’t think that you’re going to see a big effect on the consumer in the US,” Hassett insisted.
Larry Summers, former economic adviser to President Obama, said, “There is a very good chance there’s going to be more turbulence in markets the way we saw on Thursday and Friday.”
Yet Trump struck an optimistic note. “THIS IS A GREAT TIME TO GET RICH,” he wrote on social media. He later added: “Some day people will realize that Tariffs, for the United States of America, are a very beautiful thing!”
Wall Street, however, painted a bleaker picture. Companies deeply connected with China suffered severe losses—DuPont plunged 12.7% after Chinese regulators launched an anti-trust investigation, and GE Healthcare fell 16%, as 12% of its revenue comes from China.
Meanwhile, the Federal Reserve faces a dilemma: rate cuts could cushion economic damage, but may also stoke inflation. Fed Chair Jerome Powell warned, “Our obligation is to keep longer-term inflation expectations well anchored... [and ensure] a one-time increase in the price level does not become an ongoing inflation problem.”
Tokyo’s Nikkei 225 fell 7.1% in early trade after briefly plunging nearly 8%, while Taiwan’s benchmark index slumped close to 10%. South Korea’s Kospi lost 5.5%, Australia’s ASX 200 dropped 6.3%, and Singapore tumbled 8.5%, signalling widespread panic across Asia. The ASX 200 also hit its lowest level in almost 15 months.
The sharp sell-off followed Wall Street’s worst single-day performance since the Covid-19 pandemic. On Friday, the S&P 500 fell 6%, the Dow Jones Industrial Average dropped 5.5%, and the Nasdaq slid 5.8%, erasing trillions in market value.
Analysts estimate that over $9 trillion has been wiped off global stock markets in just two days, drawing comparisons to the 2008 financial crisis. Investor confidence has evaporated following China’s decision to impose a 34% tariff on all US imports beginning April 10, intensifying fears of prolonged economic disruption .
Meanwhile, US crude dipped below $60 per barrel for the first time since April 2021, and the dollar weakened to 145.98 yen, indicating a rush towards traditional safe-haven assets.
Despite the mounting turmoil, Donald Trump remained unapologetic and said, “Sometimes you have to take medicine to fix something,” denying he was deliberately fuelling a market collapse. Speaking aboard Air Force One, he insisted countries were eager to negotiate: “They’re dying to make a deal.”
The latest wave of chaos was set off after Beijing retaliated Friday, matching Trump's tariffs with its own 34% levy on all US imports starting April 10. China’s Commerce Ministry called it a direct response to the US's aggressive trade measures.
Senior officials in Washington struck a defiant tone even as they confirmed outreach from dozens of countries. “More than 50 countries have reached out to the president to begin a negotiation,” said Kevin Hassett, head of the White House National Economic Council, noting that Vietnam had already requested a 45-day delay on tariffs.
Treasury Secretary Scott Bessent added, “At this moment he’s created maximum leverage for himself... I think we’re going to have to see what the countries offer, and whether it’s believable.”
Jerome Powell, Chair of the US Federal Reserve, warned the trade war could lead to “higher inflation and lower growth,” signalling limited room for interest rate cuts. Trump, however, fired back: “CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!”
Israeli Prime Minister Benjamin Netanyahu, whose country was hit with 17% tariffs, was due in Washington Monday for emergency talks. UK Prime Minister Keir Starmer, in an op-ed, warned that “the world as we knew it has gone,” and that future stability would depend on “deals and alliances.”
Markets in Saudi Arabia, which remained open on Sunday, were also battered—plunging 6.78%, the worst daily loss since the pandemic. Australia’s Prime Minister Anthony Albanese said his government was bracing for more turmoil. “You can’t change global events. What you can do is prepare for them,” he said.
Economists have warned that tariffs could trigger price hikes at home, a charge the Trump administration denies. “I don’t think that you’re going to see a big effect on the consumer in the US,” Hassett insisted.
Larry Summers, former economic adviser to President Obama, said, “There is a very good chance there’s going to be more turbulence in markets the way we saw on Thursday and Friday.”
Yet Trump struck an optimistic note. “THIS IS A GREAT TIME TO GET RICH,” he wrote on social media. He later added: “Some day people will realize that Tariffs, for the United States of America, are a very beautiful thing!”
Wall Street, however, painted a bleaker picture. Companies deeply connected with China suffered severe losses—DuPont plunged 12.7% after Chinese regulators launched an anti-trust investigation, and GE Healthcare fell 16%, as 12% of its revenue comes from China.
Meanwhile, the Federal Reserve faces a dilemma: rate cuts could cushion economic damage, but may also stoke inflation. Fed Chair Jerome Powell warned, “Our obligation is to keep longer-term inflation expectations well anchored... [and ensure] a one-time increase in the price level does not become an ongoing inflation problem.”
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