Asian shares plummeted on Monday, with Tokyo and Taiwan benchmarks falling over 4%, as investors sought safe havens in gold due to concerns about a potentially toxic mix of worsening inflation and a slowing US economy.
The deepening trade war under President Donald Trump has led to worries among households afraid to spend, causing a slowdown in economic growth. This, combined with rising inflation, has sparked fears of “stagflation,” a worst-case scenario where the economy weakens while inflation stays high.
Global shares lost ground, with Tokyo’s benchmark falling 4.1% and Hong Kong’s Hang Seng losing 1.2%. Other regional markets also declined, including South Korea’s Kospi, Australia’s S&P/ASX 200, and Taiwan’s Taiex. The US dollar fell to 149.02 Japanese yen, while the euro rose to $1.0839.
Gold prices hit a record high of nearly $3,150 an ounce, reflecting investors’ concerns about inflation and economic uncertainty. Oil prices also fell, with US benchmark crude oil losing 4 cents to $69.32 per barrel. The US stock market also took a beating, with the Dow Jones Industrial Average sinking 715 points, or 1.7%, to 41,583.90.
The impending deadline for more tariffs has added to the uncertainty, with markets worldwide appearing shaky. With many countries in Asia heavily reliant on export manufacturing and trade surpluses with the US, investors are watching closely to see how policymakers respond to these challenges.
Source: https://www.npr.org/2025/03/31/g-s1-57260/global-shares-are-sharply-lower-as-tokyo-tumbles-4-after-wall-street-retreat