Eastern property markets sagged on Monday as hostile actions by China and US President Donald Trump caused the global financial crisis to deepen. US prospects pointed to additional losses on Wall Street, which heightened fears of a full-fledged trade war, making Friday’s traditional meltdown even more significant.
After briefly falling nearly 8 %, Taiwan’s benchmark index dropped close to 10 %, while Tokyo’s Nikkei 225 dropped 7.1 % in early trade. Singapore fell 8.5 %, indicating a widespread pang of panic in Asia, while Australia’s ASX 200 dropped 6.3 % and South Korea’s Kospi dropped 5.5 %. Additionally, the ASX 200 reached its lowest level in about 15 months.
Wall Street’s worst single-day effectiveness since the Covid-19 epidemic was followed by the strong sell-off. The S&P 500, Dow Jones Industrial Average, and Nasdaq all fell 5.8 % on Friday, erasing market value of billions.
In comparison to the 2008 financial crisis, experts estimate that over$ 9 trillion has been wiped off world stock markets in just two weeks. Investor trust has waned as a result of China’s decision to impose a 34 % tax on all US imports starting on April 10, putting further strain on worries of a lingering economic reversal.
US crude dropped below$ 60 per barrel for the first time since April 2021, and the dollar dropped to 145.98 yen, indicating a flurry to invest in traditional safe haven assets.
Donald Trump continued to be defiant and said,” Sometimes you have to get medication to correct something,” denying that he had intended to cause a market collapse. He reaffirmed that nations were willing to bargain on the plane, saying,” They’re dying to make a deal.”
Beijing responded to Trump’s tariffs on Friday by imposing its unique 34 % tax on all US imports starting on April 10 with a similar storm of conflict. It was a direct reaction to US extreme trade policies, according to China’s Commerce Ministry.
Also as they confirmed reach from dozens of locations, senior officials in Washington struck a defiant tone. The head of the White House National Economic Council, Kevin Hassett, noted that Vietnam had previously requested a 45-day wait on tariffs, that “more than 50 nations have reached out to the president have a chance to strike a deal.”
Treasury Secretary Scott Bessent continued,” At this point, he’s created optimum liquidity for himself.” I believe we’ll had to check out what the nations have to offer and whether it’s credible.
The trade war, according to Jerome Powell, the US Federal Reserve’s seat, could result in “higher prices and lower growth,” giving a lull in interest rate reductions. Trump, but, responded with the statement, “CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS”!
Israeli Prime Minister Benjamin Netanyahu was scheduled for disaster discussions on Monday in Washington after his nation was hit by 17 % taxes. In an op-ed, UK Prime Minister Keir Starmer argued that” the earth as we knew it has gone” and that “deals and relationships” will determine future security.
Saudi Arabia’s markets, which were open on Sunday, also experienced a downward spiral, dropping 6.78 %, the worst daily decline since the pandemic. Anthony Albanese, the excellent minister of Australia, claimed that his country was in for more trouble. You didn’t alter world circumstances. What you can do is get ready for them, he said.
Economists have warned that tariffs could lead to house price increases, a claim that the Trump presidency refutes. Hassett reaffirmed that” I don’t believe that the customer in the US will experience a significant impact.”
There is a pretty good chance there will be more turmoil in industry, according to Larry Summers, a former economic adviser to President Obama.
Trump nevertheless struck a positive statement. He wrote on social media that” THIS IS A GREAT Day TO Getting RICH.” He afterwards added,” Tennis will one day come to know that taxes are a very wonderful thing for the United States of America”!
But, Wall Street painted a more depressing image. Companies with a strong presence in China experienced significant losses, including GE Healthcare, which lost 16 % and DuPont, which lost 12.7 % after Chinese regulators launched an anti-trust investigation.
The Federal Reserve is in a quandary, though: price reductions may help to prevent economic harm but also could spur prices. Our task is to maintain the foundation of longer-term inflation expectations [and make sure ] that an inflation problem does not arise when the price level rises once more,” warned Fed Chair Jerome Powell.
