Stock indexes on several major markets in Asia-Pacific showed signs of recovery at the opening of the trading session on Tuesday (April 8).
After many days of “red” due to investors’ concerns about the global economic outlook when US President Donald Trump announced reciprocal tariffs as well as the Chinese government’s tough response, the Asia-Pacific stock market opened this morning, April 8, with some signs of recovery.
Australia’s S&P/ASX 200 index rose 0.18% at the open this morning. Meanwhile, Japan’s Nikkei 225 index rose 5.34%. Japan’s Topix index also rose 5.53%.
In South Korea, South Korea’s Kospi index rose 2.26% while the small-cap Kosdaq gained 2.35%.
Hong Kong’s Hang Seng Index futures were at 19,653, weaker than the HSI’s last close of 19,828.3.
In the latest development, US President Donald Trump threatened to impose an additional 50% tax on imported goods from China if the country does not withdraw its 34% retaliatory tax on US goods.
Hong Kong stocks led the decline in the region on Monday, falling more than 13% and posting their biggest one-day drop since 1997, according to FactSet data.
javascript:if(typeof(admSspPageRg)!=’undefined’){admSspPageRg.draw(2032734);}else{parent.admSspPageRg.draw(2032734);}
The US President still showed strong determination to impose tariffs when the initial unilateral tax of 10% officially took effect last Saturday. Wall Street is still hoping for positive results from bilateral negotiations between the US and other countries when the “reciprocal” tariffs will start on April 9.
“Asian shares suffered their worst fall in years, plunging to multi-year lows in a day of panic and uncertainty,” said Murthy Grandhi, corporate profile analyst at data firm GlobalData.
“The renewed trade war fears have raised concerns of a global economic slowdown, shattering the already fragile confidence of investors,” Murthy Gandhi said, adding that the way forward depends on “policy clarity and diplomatic engagement.”
US stock futures rose after the S&P 500 extended losses for a third straight day as new tariffs were announced.
Futures linked to the S&P 500 rose about 1%, while Nasdaq-100 futures rose 1.1%. Futures linked to the Dow Jones Industrial Average rose 476 points, or 1.2%.
Overnight in the US, the three major averages closed lower. The Dow Jones Industrial Average fell for a third straight day, falling 0.91% to close at 37,965.60. The Nasdaq Composite edged up 0.10% to 15,603.26. The S&P 500 fell 0.23% to close at 5,062.25.
In the latest development, China’s Ministry of Commerce said it “firmly opposes” US President Donald Trump’s reciprocal tariffs and vowed to take countermeasures to protect its own rights and interests.
The comments came after President Trump threatened to impose an additional 50% tariff on US imports from China, if Beijing did not withdraw its 34% tariff on US products last week.