Bloodbath in Asian Markets: US Tariffs Spark Global Economic Fears

Economy 10:13 07.04.2025

Asian stock markets are slumping as the shockwaves from US President Donald Trump's tariffs continue to reverberate around the world.
Major indexes from Shanghai to Tokyo and Sydney to Hong Kong plunged when they opened on Monday. "It's a bloodbath," one analyst told the BBC.

As a region that manufactures so many of the goods sold globally, Asian countries and territories are being hit directly by the tariffs.
They are also particularly sensitive to the impact of fears that a global trade war could trigger a slowdown or even a recession in the world's biggest economy.

By midday, Japan's Nikkei 225 benchmark index was down 6%, the ASX 200 in Australia was 4% lower and the Kospi in South Korea was 4.7% lower.

Slumps in mainland China, Hong Kong and Taiwan were exacerbated as investors caught up with the big falls seen in other markets on Friday as they were closed for public holidays.

The Shanghai Composite was down more than 6%, while the Hang Seng and Taiwan Weighted Index plunged by around 10%.
"Tariffs are feeding into expectations around inflation and a recession," said Julia Lee, Head from FTSE Russell - a subsidiary of the London Stock Exchange Group.

Goldman Sachs has raised its estimation of a US recession within the next 12 months to 45% - up from a previous estimate of 35% - as the investment banking giant lowered its economic growth forecast for the country.

Other Wall Street firms have also revised their recession forecasts in the wake of Trump's tariff announcement. JPMorgan now sees a 60% chance of a US and global recession.

A significant slowdown in the US economy would have major repercussions for Asian exports as the US is such an important market for goods from the region.

"Asia is bearing the brunt of the US tariff hike. While there could be some room for negotiation, a new regime of higher tariffs are here to stay," Qian Wang, Asia Pacific chief economist, at investment firm Vanguard.

"This is negative to the global and Asia economy, especially those small open economies, both in the short term and long term."
Countries from Vietnam to Bangladesh have become highly-reliant on the US as an export market.

Trump's announcement last week included a 46% tariff on Vietnam and 37% on Bangladesh.

Several major US brands produce goods in Vietnam, including Nike and Lululemon.

Bangladesh exports $8.4bn (£6.5bn) of garments a year to the US, according to trade body the Bangladesh Garment Manufacturers and Exporters Association.

"Asia is likely to feel a disproportionate brunt of this turmoil because Asia sends more exports to the US than to other markets," said Frank Lavin, a former Undersecretary for International Trade at the US Department of Commerce.

On Friday, the global stock market turmoil deepened, after China hit back at tariffs announced by Trump.

All three major US stock indexes in fell by more than 5%, with the SP 500 dropping almost 6%, capping the worst week for the US stock market since 2020.

In the UK, the FTSE 100 plunged almost 5% - its steepest fall in five years, while exchanges in Germany and France faced similar declines.
Ms Lee also highlighted that the global stock market rout looks set to continue: "US futures trading lower point to another hard session on Wall Street tonight."

Global stock markets have lost trillions in value since Trump announced sweeping new 10% import taxes on goods from every country, with products from dozens of countries, including key trading partners such as China, the European Union and Vietnam, facing far higher rates.

Madina Mammadova\\EDnews

IEPF issued a statement regarding Azerbaijani children at the UN Human Rights Council

News line

Azerbaijan increases spending on imports from Türkiye
12:24 06.05.2025
Azerbaijani Deaflympic Committee joins International Committee of Sports
12:19 06.05.2025
Prime Minister of Belarus arrives in Fuzuli
12:05 06.05.2025
Azerbaijan to join youth hockey tournament for first time
12:02 06.05.2025
Ilham Aliyev invites Belarus to participate in World Urban Forum to be held in Azerbaijan
11:59 06.05.2025
Cybersecurity conference to be held in Baku
11:56 06.05.2025
Baku to host cybersecurity conference in may
11:52 06.05.2025
Azerbaijan, Italy's Eni mull energy co-op
11:47 06.05.2025
Belarusian prime minister visits Victory Park in Baku
11:43 06.05.2025
Baku hosts discussion of Azerbaijan-Iran relations amid regional processes
11:29 06.05.2025
Deputy FM: Azerbaijan holds great importance for Iran
11:23 06.05.2025
Hungarian companies hold talks with Azerbaijani pharmaceutical manufacturers
11:21 06.05.2025
2,073 people return to Azerbaijan's Khojaly, Aghdara
11:14 06.05.2025
Azerbaijan, Türkiye hail development of cooperation in military education
11:08 06.05.2025
Have scientists solved the mystery of gold’s origin in the universe?
11:04 06.05.2025
Azerbaijani parliamentary delegation visits Sheikh Zayed Grand Mosque in Abu Dhabi
10:59 06.05.2025
Scientists develop super strong antibodies for new cancer treatment
10:55 06.05.2025
The Prime Minister of Belarus visited the Alley of Honor
10:42 06.05.2025
Tabriz media published an article about the Great Leader Heydar Aliyev
10:38 06.05.2025
Scientists have made great progress in the fight against tuberculosis
10:32 06.05.2025
Azerbaijani President Ilham Aliyev received the Prime Minister of Belarus
10:25 06.05.2025
The directions and tasks of the Ministry of Foreign Affairs have been determined
10:19 06.05.2025
Belarusian government: "A strategic partnership unites us with Azerbaijan"
10:15 06.05.2025
An event dedicated to the 102nd anniversary of Heydar Aliyev's birth was held in Cuba
10:09 06.05.2025
Azerbaijani and Iranian think tanks sign Memorandum of Understanding
10:04 06.05.2025
Heydar Aliyev commemorated in Egypt on his 102nd birthday anniversary
13:02 05.05.2025
Eurovision 2025 commentators from Azerbaijan revealed
12:53 05.05.2025
Imam Mosque in Baku's Amirjan to undergo reconstruction
12:52 05.05.2025
Azerbaijani delegation held discussions on agrarian insurance mechanism in Turkey
12:44 05.05.2025
"Artificial intelligence could replace some government officials"
12:32 05.05.2025
Ambassador: Peace agreement with Yerevan based on Baku's proposals
12:26 05.05.2025
Azerbaijan and Nepal mull cooperation on international platforms
12:17 05.05.2025
Belarusian Prime Minister Alexander Turchin arrives on an official visit to Azerbaijan
12:12 05.05.2025
Hungary and Azerbaijan may cooperate in transport infrastructure
12:08 05.05.2025
25 Azerbaijani wrestlers to participate in international tournament in Turkey
12:02 05.05.2025
Ramin Mammadov visited Vietnam
11:56 05.05.2025
"We expect progress in Vietnam-Azerbaijan relations"
11:47 05.05.2025
Azerbaijani Deputy Samir Sharifov meets with Syria's interim president
11:41 05.05.2025
Green energy corridor biggest project of Hungary and Azerbaijan
11:34 05.05.2025
Baku Marathon - 2025: 28,000 participants run under the slogan "Beat the wind"
11:28 05.05.2025
Hamısı