Global Markets Tumble as Asian Stocks Dive After Tariff Clash

The turbulence on the world's stock exchanges continues after last week's tariff announcement from Donald Trump, which was followed by an equally powerful response from China. The Hong Kong stock exchange's Hang Seng plummeted 10 percent in Monday's opening trading.

» Published:

Global Markets Tumble as Asian Stocks Dive After Tariff Clash
Photo: Shuji Kajiyama/AP/TT

Share this article

In China, the stock exchanges have been partially closed due to a public holiday – so it wasn't until the stock exchange opened on Monday that Chinese investors could trade in the new reality.

In Hong Kong, the Hang Seng index had plummeted 10 percent after just over two hours of trading.

The composite indices in Shanghai and Shenzhen had simultaneously fallen 6.1 percent and 8.4 percent, respectively.

In Japan, the yen had strengthened against the dollar, while the stock exchanges in Tokyo continued to plummet after last week's broad declines. When traders took lunch, both the Nikkei 225 and the broader Topix index were pointing to a minus 6.5 percent.

South Korea's Kospi index was simultaneously down 4.6 percent.

The US and European stock exchanges plummeted at the end of last week after Donald Trump's tariff announcement on Wednesday, followed by China's response on Friday regarding countermeasures.

Monday is also expected to be a tough day on Wall Street. Just after midnight Swedish time, the futures were indicating that the Dow Jones index would drop 3.6 percent, while the broader S&P 500 would fall 3.9 percent.

On Friday, China clarified that the country would impose an additional 34 percent tariff on goods from the US in response to Donald Trump's equally large tariff rates, which caused all three major indices in New York to continue falling.

Tags

Author

TTT
By TTEnglish edition by Sweden Herald, adapted for local and international readers

More news

Government Boosts Support for Sweden's Regional Airports

Government Boosts Support for Sweden's Regional Airports

Klarna CEO: Embracing "Swedishness" as a Key Asset

Klarna CEO: Embracing "Swedishness" as a Key Asset

Handelsbanken Swish Payment Disruption Resolved

Handelsbanken Swish Payment Disruption Resolved

Government Proposes Increased Export Credit Guarantees for Swedish Companies

Government Proposes Increased Export Credit Guarantees for Swedish Companies

AstraZeneca Halts UK Research Facility Expansion Plans

AstraZeneca Halts UK Research Facility Expansion Plans

Princess Madeleine's Skincare Brand Launch Draws Lukewarm Interest

Princess Madeleine's Skincare Brand Launch Draws Lukewarm Interest

Länsförsäkringar Swish Payment Issue Resolved

Länsförsäkringar Swish Payment Issue Resolved

Blind Box Trend Raises Concerns Over Consumer Behavior and Spending

Blind Box Trend Raises Concerns Over Consumer Behavior and Spending

France's Credit Rating Downgraded by Fitch

France's Credit Rating Downgraded by Fitch

Microsoft Gains Amid Mixed US Market

Microsoft Gains Amid Mixed US Market

FTC Investigates Google and Amazon Over Advertising Practices

FTC Investigates Google and Amazon Over Advertising Practices

US Proposes G7 Tariffs on China and India Over Russian Oil Purchases

US Proposes G7 Tariffs on China and India Over Russian Oil Purchases

Taco Bell Plans Expansion into Sweden with First Stockholm Location

Taco Bell Plans Expansion into Sweden with First Stockholm Location

Russia's Central Bank Makes Smaller Than Expected Interest Rate Cut

Russia's Central Bank Makes Smaller Than Expected Interest Rate Cut

ECB Officials Divided on Future Interest Rate Decisions

ECB Officials Divided on Future Interest Rate Decisions

Klarna CEO Secures Billion-Kronor Loan to Buy Out Co-Owner

Klarna CEO Secures Billion-Kronor Loan to Buy Out Co-Owner

Six Suspects in Consultant Scandal Face Charges After Spain Raid

Six Suspects in Consultant Scandal Face Charges After Spain Raid

Microsoft to Remove Teams from Office Package in EU Agreement

Microsoft to Remove Teams from Office Package in EU Agreement

UK Economy Growth Stagnant in July as GDP Remains Unchanged

UK Economy Growth Stagnant in July as GDP Remains Unchanged

German Inflation Rises to 2.2 Percent in August

German Inflation Rises to 2.2 Percent in August