Asian Stocks Decline Following Global Rout & Dollar Declines – Asia Market Wrap

Asian markets plummeted to their lowest level in two months, extending a worldwide equity selloff sparked by President Trump’s latest tariff threats, which pushed investors into safe-haven assets.

Japanese stocks fell to their lowest level since August, while bond yields plummeted. The S&P 500 and Nasdaq 100 both fell the most since 2020, wiping away almost $2.5 trillion from US stocks on Thursday. Equity index futures in the US and Europe also declined. The Dollar continued to fall, and 10-year US Treasury yields fell below 4% once more on Friday. Global junk bonds have weakened the most since March 2020.

French President Macron advised corporations to halt investments in the US. In reaction to Trump’s tariffs, France is also urging the EU to impose sanctions on US technology businesses. The EU, the US’ main trading partner, pledged to react Thursday, while China warned it will take countermeasures to protect its own interests.

In commodities, oil continued its rapid decline when OPEC+ suddenly expanded supplies by three times the planned level in May. Gold remained stable after sliding from its previous record high.