Asian markets have plunged, the first market to open after Donald Trump’s announcements of sweeping tariffs on everything, US “economic independence” and an end to globalization. The tariffs are much harsher than investors expected and the bleeding in stocks is predicted to be unstoppable.
On the Tokyo Stock Exchange, the Nikkei 225 fell 3.7% and Topix also fell 4%. Hong Kong’s Hang Seng dropped by almost 2%, while the Shanghai Composite Index also recorded losses. Australia’s S&P/ASX 200 was down -1.1%.
European markets are expected to open with losses of more than 2%, while liquidations will dominate Wall Street in the afternoon – as European and American stock futures are currently revealing.
In search of a refuge
What do investors do in such a massive sell-off? They are seeking shelter. Government bonds are one of them, with bond prices moving upwards on Thursday and yields falling. More specifically, the yield on 10-year US bonds fell to a 5-month low.
Gold, a stable, safe haven, also surged to new historical highs.
In the foreign exchange market, the yen and the Swiss franc strengthened against the US dollar.
In detail:
Stocks
S&P 500 futures down 2.8%
Nikkei 225 (OSE) futures down 3.7%.
Japan’s Topix index down 4%.
Australia’s S&P/ASX 200 down 1.1%.
Hong Kong’s Hang Seng down 1.7%.
Euro Stoxx 50 futures down 1.7%.
Currencies
Bloomberg Dollar Spot index down 0.7%.
The euro rose 0.6% to 1.0918 dollars.
The Japanese yen gained 1.4% to 147.20 dollars.
The offshore yuan fell 0.1% to 7.3059 dollars.
The Australian dollar fell 0.4% to 0.6275.
Cryptocurrencies
Bitcoin fell 2.6% to 83,457.51 dollars.
Ether fell 3.2% to 1,821.29.
Bonds
The yield on the US 10-year Treasury note fell 8 basis points to 4.06%.
The yield on the Japanese 10-year Treasury note fell 7.5 basis points to 1.390%.
The yield on the Australian 10-year Treasury note fell 14 basis points to 4.27%.
Commodities
West Texas Intermediate crude oil fell 2.2% to 70.11 dollars a barrel.
Spot gold rose to 3,149.74 dollars an ounce.
