Asian Markets Decline: Japan Takes the Lead in Losses
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Synopsis
On April 3, Asian markets, particularly Japan, opened lower after US President Trump introduced reciprocal tariffs on various countries. Japan faced a significant decline, leading the losses in the region's markets.
Key Takeaways
- Japan led the market declines with a nearly 3.5% drop.
- New tariffs include 34% on China and 46% on Vietnam.
- The total tariff rate on Chinese goods is 54%.
- Gold prices reached a record high of $3,153.92 per ounce.
- US markets showed gains with the S&P 500 up 0.67%.
New Delhi, April 3 (NationPress) Asian markets, spearheaded by Japan, started the day on a negative note on Thursday, following the announcement by US President Donald Trump regarding reciprocal tariffs on various nations. The tariffs include 34 percent on China, 46 percent on Vietnam, 26 percent on both India and South Korea, and 24 percent on Japanese goods.
The Nikkei 225 in Japan experienced a drop of nearly 3.5 percent, while the broader Topix index decreased by 3.32 percent.
In Hong Kong, the Hang Seng Index fell by 2.43 percent, with the Shanghai Composite Index in mainland China declining by 0.91 percent.
The new tariff for China will stack onto existing tariffs, bringing the total tariff rate to 54 percent on Chinese goods.
The Kospi index in South Korea dropped 1.29 percent, recovering from losses exceeding 3 percent. Meanwhile, Australia’s S&P/ASX 200 saw a decrease of 1.17 percent during early trading.
Gold prices surged to a record high, trading at $3,153.92 per ounce.
The Indian stock markets had not yet opened.
In the US, the S&P 500 rose by 0.67 percent to close at 5,670.97, while the Nasdaq Composite gained 0.87 percent, finishing at 17,601.05.
The Dow Jones Industrial Average added 235.36 points to end at 42,225.32, with shares of Tesla, led by Elon Musk, climbing by 5.3 percent.
Previously, Trump introduced a baseline rate of 10 percent on all imports, along with higher personalized rates for multiple countries. These tariffs represent half of what the US identified as the total tariffs and non-monetary barriers imposed by trading partner nations on American goods. Trump stated that the reduced rates reflect the kindness of the American people.
The Indian tariff on imports from the US, as calculated by the US, follows a formula that combines both monetary and non-monetary barriers, resulting in a new American levy of 26 percent on imports from India.
