Asian stock markets collapse while the shock waves of the prices of US President Donald Trump continue to have repercussions in the world.
The main Shanghai clues to Tokyo and Sydney in Hong Kong dived when they opened on Monday. “It’s a bloodbath,” said a BBC analyst.
As a region that manufactures so much goods sold worldwide, Asian countries and territories are struck directly by prices.
They are also particularly sensitive to the impact of fears that a world trade war can trigger a slowdown or even a recession in the largest economy in the world.
At noon, the Nikkei 225 Japan reference index fell 6%, the ASX 200 in Australia was 4%lower and Kospi in South Korea was more than 4.7%.
Damans in continental China, Hong Kong and Taiwan were exacerbated while investors caught up with large falls seen on other markets on Friday while they were closed for public holidays.
Shanghai’s composite was down more than 6%, while the weighted index Hang Seng and Taiwan plunged by around 10%.
“Prices are fueling inflation expectations and a recession,” said Julia Lee, FTSE Russell head – a subsidiary of London Stock Exchange Group.
Goldman Sachs has increased its estimate of an American recession in the next 12 months to 45% – against a previous estimate of 35% – because the investment banks giant has lowered its economic growth forecasts for the country.
Other Wall Street companies have also revised their recession forecasts following Trump’s pricing announcement. JPMorgan now sees 60% of an American and global recession of a recession.
A significant slowdown in the US economy would have major repercussions for Asian exports because the United States is such a important market for the goods in the region.
“Asia has the weight of the American tariff hike. Although there can be room for negotiations, a new higher prices regime is there to stay,” said Vanguard in chief of Qian Wang, chief economist of Asia-Pacific.
“This is negative for the global economy and Asia, in particular small open economies, in the short term and in the long term.”
Friday, the Global Turmination of In -depth scholarship marketsAfter China retaliated with the prices announced by Trump.
The three main American stock market indices dropped by more than 5%, the S&P 500 lowering almost 6%, caping the worst week for the US stock market since 2020.
In the United Kingdom, the FTSE 100 plunged almost 5% – its most steep drop in five years, while exchanges in Germany and France have been faced with similar declines.
Ms. Lee also stressed that the world rout of the stock market seems to continue: “US Futures merchanting a lower point towards another difficult session at Wall Street this evening.”
The global stock markets have lost thousands of billions of dollars since Trump announced that he had swept new 10% import taxes on goods from all countries, with products from dozens of countries, including key partners such as China, the European Union and Vietnam, faced with much higher rates.
