Stocks markets across Asia sank Tuesday as fears of a serious downturn in the world’s largest economy grew. US President Donald Trump ramped up a tariff war against key trade partners, further rattling investors.
Japan’s Nikkei 225 plummeted nearly 3% before recovering most of its losses to close 0.6% lower. South Korea’s KOSPI slid 2.5%, while Taiwan’s TAIEX fell 1.7%. Australia’s S&P/ASX 200 finished 1% lower, and Hong Kong’s Hang Seng Index ended flat.
Regional technology shares also took a hit, with Japanese tech giants Sony and Hitachi falling over 4.5% and Softbank slumping 4.3%. Taiwan Semiconductor Manufacturing Company, the world’s largest contract chipmaker, finished 3% down, while Apple supplier Foxconn closed nearly 3% lower.
In contrast, European markets were more muted, with Germany’s DAX and France’s CAC indexes up 0.6% and 0.5%, respectively. US stock futures pointed to a better day ahead, with Dow futures up 0.3%.
Economists attribute the market downturn to concerns over US growth and German fiscal spending. Mohit Kumar, a senior economist at Jefferies, notes that Trump’s trade policies have led to weeks of market turmoil since his inauguration.
Last week, Trump doubled tariffs on Chinese imports to 20%, prompting China to respond with retaliatory tariffs. This latest market rout follows a decline by US President Donald Trump to comment on whether the US could face a recession.
Source: https://edition.cnn.com/2025/03/11/markets/asian-stocks-us-recession-fears-tariffs-intl-hnk/index.html