Asian equities shed more than $700 billion in market value as investors confronted a fresh round of US tariffs, a jump in oil prices, and a sell-off in American tech shares. The damage ran deepest in Hong Kong and South Korea, while Japan faced added pressure from rising inflation.
Asian stock markets lost more than $700 billion in value as traders reacted to several global risks at once. The rout followed a decline in US tech stocks, renewed concerns over AI spending, and Brent crude climbing above $100.
Trump's tariffs hit dozens of countries
President Donald Trump imposed trade levies of between 10% and 12.5% on dozens of countries, including the United Kingdom, Mexico, Canada, Australia, India, China, and the 27 members of the European Union. The measures replace the blanket 10% tariff he introduced in February, after the US supreme court ruled that many of his earlier tariffs were illegal.
The new levies are expected to fall under section 301 of the Trade Act of 1974. Trump had said his administration would investigate unfair trading practices and impose permanent tariffs once that February ruling was announced.
Regional indices tumble
The selling spread across the region's benchmarks. The Japanese Nikkei 225 fell 3.1%, while the Chinese SSE Composite slipped 1.4%.
Hong Kong's Hang Seng dropped 11.4%, and South Korea's Kospi, heavily weighted toward chipmakers, lost 6.2%. Japan carried an extra burden from rising inflation. The country's price growth hit a six-month high, fueling expectations of further Bank of Japan tightening.
Oil and tech deepen the strain
Higher oil prices added to the unease. Brent crude hit $100 a barrel as the Middle East conflict escalated. It later eased about 0.9% to $99.8, though it stayed up more than 10% over the week.
Investors had likely already been spooked by a sell-off in major US tech names, amid worries about AI spending and after Tesla reported lower-than-expected profits. Reports also suggested that Iran rejected a US-backed ceasefire proposal, adding to the geopolitical strain.
Sources: Coinpedia (snippet-based), The Guardian
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