Asian stocks tumbled as a broad market sell-off deepened, driven by growing fears that an escalating trade war could hamper US economic growth and potentially trigger a recession.
Investor anxiety over a slowdown intensified following an interview with President Donald Trump on Fox News, where he spoke of a “period of transition” but refrained from predicting whether his tariffs might push the US into recession.
These remarks, combined with mounting concerns, dampened risk appetite, leading to a sharp decline in stocks while also weighing on the US dollar and Treasury yields.
Across Asia, markets suffered heavy losses, with Japan’s Nikkei and Taiwan’s benchmark index plunging to their lowest levels since September. Australia’s stock market also declined, with its benchmark index closing 0.8% lower after hitting a seven-month low earlier in the session.
On Wall Street, the S&P 500 dropped 2.7% to 5,614.56—its lowest close since September and its steepest one-day percentage loss since December. The Nasdaq Composite plunged 4% to 17,468.32, also marking its lowest close since September. Meanwhile, the Dow Jones Industrial Average declined 2.1% to 41,911.71, its lowest closing level since November 4, the day before Trump’s election as president.
Global markets echoed the downturn, with MSCI’s gauge of worldwide stocks sliding 2.3% to 832.73, after hitting its lowest point since January 13.
In the bond market, US Treasury yields fell, with the benchmark 10-year note slipping to 4.216% from 4.285% on Friday.
