Stock markets across Asia have sunk lower as the fallout continues over the sweeping US tariffs announced last week.
Japan’s Nikkei 225 index dropped nearly 8 percent Monday, while Hong Kong’s Hang Seng fell 12.4 percent.
The Shanghai Composite index, meanwhile, lost 8.4 percent, as Taiwan’s Taiex plummeted 9.7 percent.
Market observers expect investors will face more wild swings in the days and weeks to come, with a short-term resolution to the trade war appearing unlikely.
“The idea that there’s so much uncertainty going forward about how these tariffs are going to play out, that’s what’s really driving this plummet in the stock prices,” said Rintaro Nishimura, an associate at the Asia Group.
Europe’s major stock indexes have also taken a hit for the second consecutive week.
The pan-European Stoxx 600, which gauges the European equity market, fell 6 percent soon after opening. Germany’s DAX dropped nearly 10 percent in early trading.
This follows a stinging 8.4 loss in the Stoxx 600 last week, its worst weekly fall in half a decade, after Trump announced the European Union would be subject to a 20 percent tariff.
EU Trade Ministers are meeting in Luxembourg to reach a consensus on how to move forward inresponse to the latest developments.
$69bn wiped off Australian stock market
Meanwhile, Stock shares in Australia, which are subject to the baseline US tariff of 10 percent, have taken another big hit.
Its S&P/ASX 200 index fell 4.2 percent on Monday, losing some $69bn in value, according to Reuters calculations.
Australia’s four top banks were among those hit hardest, shedding a collective $18bn in market value.
Energy stocks plummeted 7 percent, hitting their lowest since early November 2020.
