Asian markets plunge with Nikkei plunging almost 8% after the merger of Wall Street

Bangkok (AP) – Asian actions denounced Monday after the collapse on Friday on Wall Street about the pricing hikes by US President Donald Trump and the reaction resulting from Beijing.

Future Americans also reported a new weakness. The future of the S&P 500 lost 3.7% while that of the industrial average of Dow Jones lost 2.9%. The future of Nasdaq lost 4.7%.

Friday, the worst market crisis since Covid struck a higher speed while the S&P 500 fell by 6% and the DOW plunged 5.5%. Composite Nasdaq dropped by 5.8%.

Late Sunday, Trump reiterated his determination on the prices. Addressing journalists in the Air Force One, he said that he did not want the world markets to fall, but also that he was not concerned about massive sales, adding: “Sometimes you have to take medication to repair something.”

Tokyo’s Nikkei 225 index has lost almost 8% shortly after opening the market and that trading in the long term for the reference was briefly suspended. It closed 7.8% to 31,136.58.

Among the largest losers were Mizuho Financial Group, whose shares flowed 10.6%. Mitsubishi UFJ Financial Group’s shares lost 10.2% while investors were panicking about how the trade war can affect the global economy.

“The idea that there is so much uncertainty in the future on the way these prices will take place is what really stimulates this song song,” said Rintaro Nishimura, associated with the Asia group.

Chinese markets often do not follow global trends, but they have also dropped. The Hang Seng of Hong Kong fell 12.4% to 20,022.82, while the Shanghai composite index lost 8.4% against 3,059.94. In Taiwan, the Taiex dropped by 9.7%.

The markets were closed on Friday in China and Kenny Ng Lai-Yin, Stratege of Everbright Securities International, said that major movements could reflect certain catch-up of Friday.

Electronic commerce Alibaba Group Holdings dropped by 9.9% and Tencent Holdings, another technology giant, lost 13%.

South Korea Kospi lost 5.6% against 2,328.20, while the Australian S&P / P / P / ASX 200 lost 7,343.30, recovering from a loss of more than 6%.

Asia depends particularly on exports and a large part goes to the United States.

“Beyond the collapse of the market, the greatest concern is the impact and potential crises for small and dependent on trade economies, it is therefore crucial to see if Trump will soon conclude agreements with most countries, at least partially,” said Gary Ng of Nataxis.

Oil prices also sank further, with an American reference crude down from $ 1.74 to $ 60.25 per barrel. The Brent Brut, the international standard, granted $ 1.75 to $ 63.83 per barrel.

Exchange rates have also been gyrates. The US dollar fell to 145.52 Japanese yen from 146.94 yen. The yen is often considered a safe refuge during periods of trouble. The euro increased to $ 1.1,000, compared to $ 1,0962.

Market observers expect investors to face more wild oscillations in the days and weeks to come, with a short -term resolution for the trade war that is unlikely.

Nathan Thooft, investment director and main portfolio director at Manulife Investment Management, said more countries are likely to respond to the United States with reprisals. Given the large number of countries involved, “it will take a long time in our opinion to cross the various negotiations likely to occur.”

“In the end, our point of view is the uncertain market and volatility is likely to persist for a while,” he said.

The sale of heavy people triggered a glance after the great increase of President Donald Trump has adorned that President Donald Trump announced last week, increasing the challenges of a trade war that could end with a recession that hurts everyone. Even a better than expected report on the American labor market, generally the culminating economic point of each month, was not enough to stop the slide.

The Beijing Ministry of Commerce has ordered its own 34% rate on imports of all American products from April 10, among other measures, in response to the 34% prices imposed by the United States from China.

The United States and China are the two largest economies in the world, and a great fear is that the trade war can cause a global recession. If this is the case, stock prices are still falling. Friday, the S&P 500 was down 17.4% compared to its record set in February.

Americans can feel “a certain pain” because of the prices, said Trump, but he argues that long-term objectives, in particular recovering more manufacturing jobs in the United States, are worth it.

The federal reserve could amortize the coup of the prices on the economy by reducing interest rates, which can encourage companies and households to borrow and spend. But the president of the Fed, Jerome Powell, said on Friday that higher prices could increase expectations of inflation and lower rates could supply even more price.

Many will depend on the duration of Trump prices and the reaction of other countries. Some investors hope that he will lower the prices after negotiating “victories” from other countries.

Stuart Kaiser, head of the American capital strategy at Citi, wrote in a note to customers on Sunday that profits and stock market values ​​still do not reflect the potential impact of the trade war. “There is enough space for disadvantage despite the great decline,” he said.

The Trump administration has shown no signs of restraint on prices that caused billions of dollars in losses.

Appearing on “Sunday Morning Futures” by Fox News Channel, the White House sales advisor Peter Navarro echoes the president when he said that investors should not panic because the approach to the commercial administration would inaugurate “the biggest boom in the stock market that we have ever seen”.

“People should simply sit tight, let this market find its bottom, not to shake by panic in the media,” said Navarro.

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The writers of the Associated Press Ayaka McGill, Paul Harloff and Jiang Junzhe contributed.