Global Markets:
- Asian Stock Markets : Nikkei down 4.34%, Shanghai Composite up 0.2%, Hang Seng down 1.93% ASX down 1.84%
- Commodities : Gold at $3034.35 (1.4%), Silver at $29.087 (-0.48%), Brent Oil at $60.65 (-3.95%), WTI Oil at $57.26 (-3.94%)
- Rates : US 10-year yield at 4.406, UK 10-year yield at 4.6060, Germany 10-year yield at 2.6245
News & Data:
- (CAD) Ivey PMI 51.3 to 53.2 expected
Markets Update:
Asia-Pacific markets tumbled on Wednesday as new U.S. tariffs introduced by President Donald Trump took effect, targeting specific countries and escalating trade tensions.
Australia’s S&P/ASX 200 declined 1.06%. In Japan, the Nikkei 225 dropped 3.14% and the broader Topix shed 3.26%. South Korea’s Kospi slid 0.95%, confirming a bear market with a 20% drop from its July high. The small-cap Kosdaq slipped 0.44%. Hong Kong’s Hang Seng Index plunged 3.86%, while the Hang Seng Tech Index sank 5.42%. China’s CSI 300 eased 0.26%.
The fresh tariffs added to the 10% baseline duty already introduced on Saturday, pushing cumulative duties on Chinese goods to 104%. The move has intensified concerns of a prolonged trade conflict between the world’s two largest economies.
India’s central bank cut its benchmark interest rate by 25 basis points to 6%, as anticipated by analysts surveyed by Reuters. However, the Nifty 50 index still declined 0.39% in response to global market weakness.
In the U.S., major indexes also closed lower overnight. The Dow Jones Industrial Average fell 320.01 points, or 0.84%, to 37,645.59, extending its four-day loss to over 4,500 points amid trade-related worries. Apple led the drop, with tariffs expected to significantly raise costs.
The S&P 500 slid 1.57% to 4,982.77, closing below the 5,000 mark for the first time since April 2024. It came close to entering bear market territory, down nearly 19% from its February peak, and has fallen over 12% in just four days.
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