Asian stocks tumbled on Monday, weighed down by rising trade tensions as U.S. President Donald Trump prepares to unveil broad tariffs on April 2. The Wall Street Journal report that Trump is considering even bigger and broader tariffs spooked investors, leading to steep losses across regional markets.
Adding to the sell-off, Wall Street’s sharp drop on Friday—triggered by hot inflation data—weighed heavily on sentiment. Despite strong economic data from China, markets failed to find relief, as uncertainty surrounding trade and economic disruptions took center stage.
\ud83d\udcc9 Nikkei 225: -3.9%
\ud83d\udcc9 KOSPI (South Korea): -2.6%
\ud83d\udcc9 TOPIX (Japan): -3.3%
\ud83d\udd39 What’s Driving the Sell-off?
Auto & tech stocks plunged over concerns about Trump’s 25% auto tariff
AI-related technology stocks tumbled, fueled by reports that Microsoft (NASDAQ: MSFT) canceled multiple data center leases
Japan’s industrial production beat expectations, but retail sales disappointed
\ud83d\udcc9 Shanghai Composite: -0.7%
\ud83d\udcc9 CSI 300: -0.7%
\ud83d\udcc9 Hang Seng (Hong Kong): -1.5%
\ud83d\udd39 Why Are Chinese Markets Falling?
China’s manufacturing & non-manufacturing PMI exceeded forecasts, signaling economic resilience \u2705
However, trade uncertainty and fears of fresh U.S. tariffs overshadowed optimism \u26d4
\ud83d\udcc9 Australia’s ASX 200: -1.6% ahead of the RBA interest rate decision on Tuesday
\ud83d\udcc9 Southeast Asian markets were closed for a holiday
Risk aversion remains high as investors brace for the RBA’s policy stance and Trump’s upcoming tariff decision.
\ud83d\udccc Tuesday – The Reserve Bank of Australia’s interest rate decision will impact markets
\ud83d\udccc Wednesday – Trump to announce initial tariff levels
\ud83d\udccc Thursday – Auto tariffs (potentially 25%) expected
