Asian stock markets have experienced a sharp decline this morning, while shocks caused by the customs of the US President Donald Trump continues to spread the global economy.
From Shanghai and Tokyo to Sydney and Hong Kong, the main stock indices sank immediately after opening. “Bloodshed,” an analyst for the BBC said.
As a region that produces a large part of the goods sold around the world, Asian countries and territory are directly affected by customs. They are also extremely sensitive to the possibility of the trade war to cause a slowdown or even recession in the US economy, largest in the world.
By noon local time:
- Nikkei 225 in Japan was lower by 6%
- ASX 200 in Australia fell 4%
- Kospi in South Korea fell 4.7%
- Shanghai Composite was in minus over 6%
- Hang Seng (Hong Kong) and Taiwan Weighted Index fell by as many as 10%
In China, Hong Kong and Taiwan, the falls further exacerbated that investors had just reacted to sharp downs in other markets on Friday, when their markets were closed due to holidays.
“Customs affect the expectations around inflation and recession,” Julia Lee said from FTSE Russell, part of the London Stock Exchange.
Goldman Sachs increased his risk assessment in the USA in the next year with 35% to 45%, at the same time reducing the forecast of economic growth. JPMorgan now estimates that there is a 60 percent chance for a recession and in the US and globally.
It was warned that a serious slowdown in the US economy would strongly affected Asian exports, given that the US is a key market for goods from the region.
“Asia is the most feeling stroke of the American Customs increase,” said Qian Wang, the main economist for Asia and Pacific in the Vanguard’s investment house.
“And while there is still space for negotiations, higher customs regimes probably remains. It is negatively for the global and asian economy – how short-term and in the long run,” he added.
On Friday, the crisis in global markets has additionally escalated, after China retaliated on Trump Customs. All three main American stock market indices fell more than 5%, and the S & P 500 ended the week with almost 6% – the worst week for the American market since 2020.
In the UK, the FTSE 100 index fell almost 5%, which is the deepest decline in the last five years, while the stock exchanges also recorded large minuses.
“Market panic continues – American futures indices are again in the minus and Wall Street is threatening another difficult day tonight,” Lee warned.
From the publication of Trump Customs – 10% on imported goods from all countries, with higher rates for key partners such as China, the EU and Vietnams – global markets lost the trillion dollars value.
(Vijesti.ba)
