Asian Stocks Gain After Wall Street Wobbles on Tariff Threats
Asian stock markets opened higher on Tuesday, following a volatile day on Wall Street. Japan and Australia led the gains, while US futures for S&P 500 and Nasdaq 100 also moved up by more than 1%.
However, Hong Kong futures signaled losses as US-listed Chinese companies dropped over 5%. This came after US President Donald Trump warned of a possible 50% increase in tariffs on Chinese goods.
Also Read: Nifty, Sensex Set for Strong Start as GIFT Nifty Rises 350 Points
US Markets Struggle Amid Trade Worries
The US stock market experienced sharp ups and downs due to fears of a slowdown in the economy. The S&P 500 almost entered bear market territory but managed to recover slightly by the end of Monday.
Despite global concerns, Trump confirmed he would continue with tariff plans and wasn’t pausing any actions, even though many countries reached out to avoid such economic measures.
Experts Say Volatility May Continue
Market experts say the news from Washington will keep affecting global stocks. Chris Larkin from Morgan Stanley said that such volatility has happened before and often signals the market is near its lowest point — but it's hard to know when that is.
Bond Markets React to Sell-Off
US Treasury bonds dropped on Monday as investors sold off some of their gains to make up for losses in stocks. The 10-year bond yield rose by 19 basis points. Bonds in Australia and New Zealand followed similar trends.
Traders also adjusted their expectations from the US Federal Reserve. Markets are now expecting at least three interest rate cuts this year, starting in June.
China’s Market Falls Due to Trade Tensions
On Monday, Chinese stock markets fell sharply. Government bond yields also moved close to record lows. Investors fear that the trade war between the US and China is entering a more serious stage.
Japan Faces New Tariffs But Begins Talks
Trump assigned two US officials to begin trade discussions with Japan after speaking to Prime Minister Shigeru Ishiba. Japan is set to face a 24% general tariff and an additional 25% duty on cars starting Wednesday.
Wall Street Voices Raise Concerns
Many big names in finance expressed concerns about the market. Bill Ackman warned of a possible economic disaster, calling it a “nuclear winter.” Boaz Weinstein said the downturn had only just begun, and Jamie Dimon warned of long-term damage.
Matt Maley from Miller Tabak said markets might bounce back soon, but it would take time for the economy and stocks to adjust to the new reality.
Also Read: Donald Trump Says Markets Will Heal, Pushes Ahead With Tariffs
.