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US equity index futures and Asian stocks fell sharply in early trading after Donald Trump’s administration showed that swept tariffs would remain in place despite the potential to cause a global economic recession.
Contracts tracking the Blue Chip S&P 500 have dropped by 2.8%, while contracts with the high-tech NASDAQ 100 have slided 3.4%.
The Chinese market fell sharply, Hong Kong’s Hangsen index fell more than 10%, while the mainland CSI 300 index fell 5.8%.
In Japan, Topix fell by 6.5% and 9.6%, while the Nikkei 225 fell by 6.3%. Australia’s S&P/ASX 200 and South Korea’s Kospi also fell by more than 4%.
The decline occurs after over 5tn has been erased from the S&P 500 at the end of the worst week on Thursday and Friday since the start of the coronavirus pandemic in 2020.
Trump’s move to reform the global trade order by implementing massive taxes on US imports has deepened concerns about the trajectory of the world economy. China announced its retaliation mission of 34% on Friday.
The goods also suffered significant losses, the US oil price benchmark West Texas intermediate, down 3.4% per barrel to $59.80. International benchmark Brent crude oil fell 3.4% to $63.35.
LME copper is widely seen as a growth proxy for industrial use, falling by more than 7% to $8,690 per tonne.
Bitcoin fell 0.8% to $178,198 tokens. The US dollar fell 0.3% against the basket of its biggest trading partner currencies, while the Japanese yen rose 0.8% to 145.6 yen per 145.6 yen. Freely traded China’s offshore yuan fell 0.2% to Rmb7.31 per dollar.
The Japanese Prime Minister said the Japanese Prime Minister would visit the US to meet Trump as soon as possible, but during that time the country “must prepare a package of measures relating to what Japan can do.”
At one stage, Topix had fallen by 9.6%, with more inventory not being traded due to oversell orders. “Some asset managers are frozen and not taking action, others are going to cash and waiting for things to be washed away,” said one Tokyo-based broker.
“There’s hope that there’s a chance that a bounce might come, but if that’s a good bet, I don’t know the time from time today,” the broker added.
Toyota’s stock fell almost 7%, but Nintendo fell 9.6% after news that it had delayed pre-orders for its new US Switch 2 console following the tariff announcement. SoftBank fell by 12.7% and MUFG fell by 15%.
“Investors are closing many jobs in light of volatility,” said Jason Louis, head of Asia-Pacific Equity and Derivatives Strategy at BNP Paribas. “[The falls are] It reflects some of the positioning, particularly foreign positioning in Japanese banks and finances. ”
Trump showed no indication that he would retreat from his tariff plans on Sunday.
“We have a massive financial deficit with China, the European Union and many others. The only way we can cure this problem is that it is currently bringing tens of thousands of dollars to the US, which they already have enabled, and it’s eye-opening beautiful,” he writes about the true society.
Later, when asked about the market collapse, Trump told reporters, “Sometimes you have to take medication to fix something.”
Previously, Treasury Secretary Scott Bescent dismissed the “short-term” market response to the president’s aggressive tariffs, telling NBC that the White House “holds the course.” Asked if Trump’s tariffs are negotiable, he said: “What will we have to look at? [other] The country offers whether it is unbelievable or not.”
His comments followed a warning from Federal Reserve Chairman Jay Powell that tariffs “have high inflation and slow growth.”
The US Treasury yields in 2010, closely monitored by Trump administration officials, fell 0.08 percentage points to 3.91 percent as investors loaded bonds globally. Japan’s 10-year yield fell 0.07 percentage points to 1.11%, while China’s 10-year yield fell 0.09 percentage points to 1.64%.
Bill Ackman, an activist investor who voiced Trump during the campaign, posted on X that he risked that “large, disproportionate tariffs will destroy confidence as a trading partner, where we do business, and as a market for investing capital.”
