Selloff in Asia markets and US futures deepen as Trump's tariffs kick in
Kazuhiro Nogi/AFP/Getty Images
- Asia shares and US futures deepen losses after US President Trump's new tariffs kicked off.
- Trump's new tariffs have sparked global market volatility and economic concerns.
- China is vowing to retaliate against US tariffs, impacting global trade and market stability.
Losses in Asian shares are deepening after US President Donald Trump's sweeping tariffs came into effected on Wednesday.
Here's where major Asia indexes stand:
- Japan's Nikkei 225: -5% at 1:28 p.m. local time
- South Korea's Kospi: -1.7% at 1:39 p.m.
- Hang Seng Index: -1.6% at 12:40 p.m.
US futures are down, too:
- S&P 500 futures: -2.6% at 4,894.25 at 12:30 a.m. ET
- Dow Jones futures: -2.2% at 37,016
- Nasdaq-100 futures: -2.7% at 16,786.5
The losses follow a wild overnight trading session on Wall Street, during which stocks opened up only to erase big gains and ended lower.
The wild swings in the markets point to persistent volatility after US President Donald Trump shook up the world's global trading system with new sweeping tariffs.
China — which has retaliated against Trump's tariffs — vowed on Tuesday that it will not back down and will "fight to the end." The world's second-largest economy faces 104% tariffs from the US.
The Japanese yen, a haven currency, gained against the dollar.
Oil futures tanked to four-year lows. US benchmark West Texas Intermediate crude futures fell were 4.4% lower at $56.97 a barrel at 12:28 a.m. ET. International benchmark Brent futures were 4% lower at $60.31 a barrel.
Even Treasuries — typically a safe haven — sold off as investors dashed for the safety of cash.
The spot gold price was up 1%, around $3,010 per ounce.
"We caution that trade tensions and geopolitical risks are likely to remain elevated over the coming quarters and keep investors on the sidelines," analysts at CreditSights wrote in a Wednesday note.
Investors continue to worry over the impact of Trump's tariffs, which are expected to fuel inflation and slow investment in the US.
"Historically, the effects of a slowing US economy have spilled over to the rest of the world, weighing on global growth and strengthening the dollar against most currencies, with the exception of traditional havens such as the Japanese yen and Swiss franc," wrote strategists at Lombard Odier, a Swiss private bank, in a Tuesday note.