Asia stocks slide; Nikkei hits 8-mth low after Trump tariffs roil markets

 Asian financial markets experienced significant declines following the announcement of new tariffs by U.S. President Donald Trump. The Nikkei 225 index in Japan fell as much as 4.7%, reaching its lowest level since early August 2024, before recovering slightly to a 2.8% loss. South Korea's Kospi index also dropped approximately 2%, while Hong Kong's Hang Seng index declined around 1.8%. ​

These market reactions were prompted by President Trump's announcement of a 10% baseline tariff on all imports, with higher tariffs imposed on specific countries. Japan faces a 24% tariff, while China is subjected to a 34% tariff. These measures have raised concerns about escalating trade tensions and potential impacts on global supply chains.​

The technology sector has been particularly affected, as many companies rely on manufacturing hubs in China and Taiwan, which are now facing tariffs exceeding 30%. This has led to apprehensions about increased production costs and potential disruptions in supply chains. ​

In response to these developments, investors have sought safer assets, leading to a surge in gold prices to record highs above $3,160 an ounce. Additionally, the Japanese yen has appreciated against the U.S. dollar, reflecting a flight to safety amid market uncertainties.

As the situation evolves, market participants are advised to monitor further developments closely, as ongoing trade tensions may continue to influence global financial markets.