BANGKOK — Global stock markets experienced a sharp decline on Monday following the increase in U.S. tariffs and subsequent countermeasures from China, triggering widespread selling.

European markets followed the downward trend set by Asia, with Germany’s DAX dropping 6.5% to 19,311.29. In Paris, the CAC 40 fell 5.9% to 6,844.96, while the UK’s FTSE 100 decreased by 5% to 7,652.73.

U.S. futures indicated continued weakness. The S&P 500 future declined by 3.4%, the Dow Jones Industrial Average future by 3.1%, and the Nasdaq future by 5.3%.

On Friday, market turmoil intensified, with the S&P 500 falling 6% and the Dow dropping 5.5%. The Nasdaq composite decreased by 3.8%.

President Trump reaffirmed his stance on tariffs on Sunday, stating that while he didn’t desire market declines, he wasn’t worried about the sell-offs, suggesting that “sometimes you have to take medicine to fix something.”

Tokyo’s Nikkei 225 index fell nearly 8% shortly after opening, briefly suspending futures trading. It closed down 7.8% at 31,136.58.

Mizuho Financial Group and Mitsubishi UFJ Financial Group experienced significant losses, with shares falling 10.6% and 10.2% respectively, amid investor concerns about the trade war’s impact on the global economy.

Rintaro Nishimura of the Asia Group stated that the uncertainty surrounding the tariffs’ effects is driving the decline in stock prices.

Chinese markets also experienced declines. Hong Kong’s Hang Seng fell 13.2% to 19,828.30, while the Shanghai Composite index decreased by 7.3% to 3,096.58. Taiwan’s Taiex fell 9.7%.

Kenny Ng Lai-yin of Everbright Securities International suggested that the declines may reflect a catch-up from Friday’s market closures in China.

E-commerce giant Alibaba Group Holdings fell 18%, and tech giant Tencent Holdings lost 12.5%.

South Korea’s Kospi decreased by 5.6% to 2,328.20, while Australia’s S&P/ASX 200 fell 4.2% to 7,343.30, recovering from a steeper drop.

Asia’s reliance on exports, particularly to the U.S., is a contributing factor to the market downturn.

Gary Ng of Nataxis noted the potential crises for small, trade-dependent economies and emphasized the importance of Trump reaching agreements with countries soon.

Oil prices also declined, with U.S. benchmark crude down $2.03 at $59.96 per barrel and Brent crude down $2.03 to $63.55 a barrel.

Currency exchange rates fluctuated, with the U.S. dollar falling to 146.24 Japanese yen and the euro rising to $1.0970.

Market observers anticipate continued market volatility in the near future due to the unlikelihood of a quick resolution to the trade war.

Nathan Thooft of Manulife Investment Management predicted retaliatory tariffs from more countries, leading to prolonged negotiations and market uncertainty.

Heavy selling was triggered by China’s response to President Trump’s tariff increase, escalating the trade war and raising recession concerns. Even positive U.S. job market data couldn’t halt the decline.

China’s Commerce Ministry announced a 34% tariff on imports of all U.S. products beginning April 10, in response to U.S. tariffs on Chinese imports.

The trade war between the U.S. and China, the world’s two largest economies, raises concerns about a potential global recession, which could further depress stock prices. The S&P 500 was down 17.4% from its February record as of Friday.

President Trump acknowledged that Americans may experience “some pain” from tariffs but argued that the long-term benefits, such as increased manufacturing jobs in the U.S., are worth it.

The Federal Reserve could potentially mitigate the impact of tariffs by cutting interest rates, but Chairman Jerome Powell noted that this could also lead to increased inflation.

The duration of Trump’s tariffs and the reactions of other countries will be crucial factors. Some investors remain hopeful that he will lower tariffs after securing favorable trade deals.

Stuart Kaiser of Citi suggested that earnings estimates and stock values don’t fully reflect the potential impact of the trade war, indicating further downside risk.

The Trump administration has not indicated any intention of easing the tariffs, despite the significant financial losses they have caused.

White House trade advisor Peter Navarro, appearing on Fox News Channel, echoed the president’s sentiment, urging investors to remain calm and allow the market to find its bottom, predicting a significant stock market boom as a result of the administration’s trade policies.

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