Asian shares fell on Monday as investors worry about President Donald Trump’s proposed tariffs on key U.S. trading partners. Japan’s Nikkei 225 dropped 2.7%, while Australia’s S&P/ASX 200 declined 1.8%. South Korea’s Kospi also fell 2.5%.
Analysts say Asian markets are bracing for a possible trade war escalation, which could lead to reduced global trade flows and higher costs for businesses. The U.S. stock market also ended lower last week, with the S&P 500 falling 0.5% and the Nasdaq composite dropping 0.3%.
The Dow Jones Industrial Average fell 0.8%, with technology and energy companies accounting for much of the decline. Investors were affected by a report on AI chips, which raised questions about the need for investment in the sector.
Trump’s tariffs on Canada, Mexico, and China are set to take effect Tuesday. Canada and Mexico have ordered retaliatory tariffs on American goods, including products from the U.S. Treasury yields rose due to tariff worries, with the 10-year bond yield increasing to 4.54%. The Federal Reserve also left interest rates unchanged, taking a cautious view of Trump’s policies.
Energy prices jumped, with benchmark U.S. crude rising $1.37 to $73.90 a barrel and Brent crude gaining 72 cents to $76.39 a barrel. The dollar edged up to 155.52 Japanese yen from 155.18 yen.
Source: https://thehill.com/homenews/ap/ap-business/ap-stock-market-today-asian-shares-slip-as-worries-grow-about-trumps-tariffs