The Editor’s Digest newsletter, curated weekly by Financial Times Editor Roula Khalaf, features selected stories at no cost to readers.
On Monday, global markets experienced a decline due to concerns about an escalated trade conflict, following expectations that Donald Trump would announce additional tariffs. Stocks in Japan, South Korea, and Hong Kong suffered significant decreases, continuing a sell-off from the previous week. President Trump indicated that the anticipated U.S. tariffs, slated for announcement on April 2, would be applied globally. He stated that “every single country in Asia” had participated in what he described as “unfair” trade practices toward the United States.
Japan’s Topix index dropped by 3.3%, while the Nikkei 225, known for its focus on exports, decreased by 3.9%. Taiwan’s Taiex fell by 3.3%, South Korea’s Kospi by 2.6%, and Hong Kong’s Hang Seng by 0.8%.
Regional chipmakers were among the hardest hit, with Taiwan Semiconductor Manufacturing Company and Samsung Electronics both dropping over 2.9%. Meanwhile, Japan’s Disco, a company specializing in chip production tools, saw a decline of more than 7%.
In Hong Kong, technology firms such as Tencent and Alibaba also suffered losses, falling by 1.5% and 2%, respectively. Gold prices surged to a record $3,098 per troy ounce, while yields on U.S. Treasury securities decreased, indicating a shift toward safer investments.
Wei Li, who leads multi-asset strategy for BNP Paribas Asset Management in China, noted that many investors were unwinding their positions and realizing gains, in anticipation of the announced tariffs affecting market sentiment.
President Trump has described April 2 as a “liberation day” for the U.S. economy, yet his proposed reciprocal tariffs on countries deemed to have unfair trade relations with the U.S. have unsettled investors. In currency markets, the yen rose by 0.4% against the dollar to ¥149.30, while South Korea’s won remained steady. The dollar decreased by 0.2% relative to a basket of key trading partners’ currencies.
The movements in Asian markets followed declines on the prior Friday in the U.S., where the S&P 500 dropped by 2%, and the tech-heavy Nasdaq Composite decreased by 2.7%, amid concerns about economic conditions and consumer sentiment that triggered fears of stagflation.
In futures markets, the Nasdaq 100 contracts indicated a drop of 1.2%, and those for the S&P 500 pointed to a 0.7% decrease. European futures for the Stoxx 600 were down by 0.6%.
