KUALA LUMPUR — Asian markets slipped at the week’s opening this morning as fears intensified over a global trade war over ahead of the April 9 deadline for US’ reciprocal tariffs.
Earlier, Japan’s Nikkei 225 index plunged over 8% at the week’s opening this morning, intensifying fears of a global trade war.
Its share average fell below the 33,000 level for the first time since August 2024, Reuters reported.
The Tokyo Stock Price Index, known as the Topix, fell by more than 9% this morning.
The benchmark Korea Composite Stock Price Index lost 103.56 points, or 4.2%, to 2,361.86 in the first 15 minutes of trading.
In Singapore, the Straits Times Index plunged 7.37% at opening, losing 281.84 points.
Hong Kong’s Hang Seng index was down 8% in early trade, while China’s CSI300 blue-chip index fell 4.5%.
Bursa Malaysia also trended lower in early trade today, slipping below the 1,500-mark, tracking Wall Street’s downbeat performance last Friday after China announced retaliatory 34% tariff on US goods, raising fears of a full-blown global trade war.
At 9.04 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) declined by 49.92 points, or 3.32%, to 1,454.22 from Friday’s close of 1,504.14, Bernama reports.
The benchmark index opened 28.83 points lower at 1,475.31.
The broader market was also negative. Decliners thumped gainers 748 to 39, while 148 counters were unchanged, 1,424 untraded, and 19 suspended.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng told Bernama that on the home front, investors are likely to adopt a more cautious stance amid ongoing concerns over global trade developments.
“In view of heightened uncertainty, we expect investors to remain on the sidelines as sentiment turns increasingly cautious. As such, we anticipate the index to hover within the 1,500–1,510 range today,” he told the newswire.
US stocks are also set to open sharply lower Monday, signalling a bear market for the S&P 500, a drop of 20% from its peak.
US President Donald Trump’s base tariff of 10% on all imports to the US were implemented since April 5, and markets are bracing for more fallout when reciprocal tariffs take effect on April 9.
Market fears escalated on Friday after China announced its retaliatory tariff of 34% on US goods.
The selloff on the S&P 500 deepened Friday over indications by US Federal Reserve Chair Jerome Powell that the tariffs would cause a bigger than expected trade war.
The tariffs announcement also depressed oil prices over the weekend.
Reuters said more volatility could be in store ahead of April 9, just two days away, citing analyst Jeffrey Palma at Cohen & Steers who said the “playbook on this is very, very unclear”.
On recession fears, Reuters cited JPMorgan analysts raising the risk of a global one this year, from 60% from 40% previously.
Since Trump’s announcement on April 2, White House officials have dismissed fears of inflation and recession.
They were also reported saying that at least 50 countries impacted have reached out to the US to begin negotiations.
In Southeast Asia, this includes manufacturing powerhouse Vietnam, which was slapped with a 46% tariff and has requested a delay of at least 45 days.
While some are hoping this would see Trump willing to make concessions, US Commerce Secretary Howard Lutnick was reported by CBS News saying that the president intended to follow through on the reciprocal tariffs come April 9.
“(That 50 countries have approached the White House to negotiate shows) that all these countries know that they’ve been ripping us off, and the day has come for that to end,” he said.
Economists have warned that the impact of the US tariffs would be felt worst by the American consumer. – April 7, 2025