Stocks in Asia slumped, with a key benchmark sliding by the most in over 16 years, as Chinese shares led a broad and deep selloff on worry over the trade war’s impact on the global economy.
The MSCI Asia Pacific Index fell as much as 7.9%, the most since October 2008, with TSMC, Tencent and Sony among the biggest drags. Hong Kong’s Hang Seng Index plunged as much as 10.7%, the worst since the global financial crisis. Every market was solidly in the red.
President Donald Trump dug in his heels after the tariffs he announced last week spurred retaliation by China. The biggest concern is that if nothing is done to de-escalate the situation, economies around the world could slide into recession.
“We are seeing selling across every sector — not just trade impacted,” said Jun Bei Liu, founder of hedge fund Ten Cap Pty Ltd. “I think the way to look at this is that we are seeing proper capitulation in the share market.”
Taiwan’s tech-heavy equity benchmark slid as much as 9.8%, the most on record and on track to enter a bear market, following holidays last Thursday and Friday. Key gauges were down more than 4% in Japan and South Korea. Markets were closed for holidays in Indonesia, Thailand and Vietnam.
See also: Market rout looks set to extend this week, STI ‘particularly vulnerable’: IG
Sectors to watch
- Shares of Apple suppliers in China fall on concerns over higher operational costs and demand slowdown triggered by tariffs.
- Shares of Chinese industries that are involved in the country’s retaliatory measures against US tariffs rise, as traders gauge the potential beneficiaries of measures to boost domestic substitution.
Markets at a glance
See also: M&A and IPOs worth billions stalled in 24 hours by trade war
- MSCI Asia Pacific Index fell 6.6%
- Japan’s Topix Index fell 6.5%; Japan’s Nikkei Index fell 6.5%
- China’s CSI 300 Index fell 5.2%; Hong Kong’s Hang Seng Index fell 9.1%; Hong Kong’s Hang Seng China Enterprises Index fell 9%
- Taiwan’s Taiex Index fell 9.7%
- South Korea’s Kospi Index fell 4.3%; South Korea’s Kospi 200 Index fell 4.5%
- Australia’s S&P/ASX 200 Index fell 3.7%; New Zealand’s S&P/NZX 50 Gross Index fell 3%
- Singapore’s Straits Times Index fell 6.4%; Malaysia’s KLCI Index fell 5.6%; Philippines’s PSEi Index fell 4.1%
- 10-year Treasury yield fell six basis points
- Bloomberg Dollar Index rose 0.2%
- West Texas Intermediate crude fell 2.5% to $60 a barrel
- Euro fell 0.3%
Here are the most notable movers
- Pop Mart shares fall as much as 15% in HK, the most since July 18, 2022, on rising concerns over demand as global recession may be triggered by tariffs.
- Taiwan Semiconductor Manufacturing Co. tumbled by the stock exchange’s limit as trading resumed Monday in Taiwan, playing catchup to a global selloff triggered by President Donald Trump’s steep tariff hikes.
- Nintendo Co. and Sony Group Corp. shares fell by more than 10% in Tokyo on Monday amid a widespread selloff in Japan exacerbated by President Donald Trump’s latest comments on the far-reaching tariffs he’s imposed on US imports.
Notes from the market watchers
- It’s not yet time to buy the dip in Chinese stocks, as markets are too volatile at the moment to either add or reduce beta, said Ken Wong, Asian equity portfolio specialist at Eastspring Investments Hong Kong Ltd.
- Goldman Sachs lowers its Topix target levels on greater than previously expected trade policy uncertainty, and on increasing concerns over the economic outlook.
- JPMorgan strategists suggest buying India, China and Singapore stocks for a trading rally opportunity after the initial tariff shock.
- US President Donald Trump’s contradictory policy agenda that carries tariffs and tax cuts may cause international investors to rotate toward non-US assets, according to Jefferies global strategist Christopher Wood.
Related market news
- Taking Stock: As US President Donald Trump’s tariff blitz wreaks havoc on risk assets around the world, some money managers are seeing relative appeal in Singapore.
- Global Wrap: A flight from global equities accelerated Monday and investors piled into haven assets as the fallout from US President Donald Trump’s tariffs deepened after China announced retaliatory measures.
