As Tariffs Take Effect, Treasuries Drop & Stocks Decline – Asia Market Wrap
Treasuries and stocks fell as Trump raised trade duties to a 100-year high, increasing pressure on China.
US government bonds fell for the third day in a row, with long-term rates rising on growing concerns about their haven status. The Dollar plummeted, and recession fears pushed Asian equities to their lowest level since January 2024. Equity-index futures for Europe and the US fell, indicating mounting fears about the world’s largest economy. Oil fell to a new four-year low.
The worsening trade war – with Trump raising levies on China to 104% – has been condemned by investors including prompted economists at JPMorgan and Goldman Sachs to raise the probability of a US recession. As volatility and tension spread throughout markets, investors are concerned that something will go wrong in the financial system.
Asian countries bear the brunt of the restrictions, with Cambodia and Vietnam receiving 49% and 46% tariffs, respectively. Imports from the EU will be taxed at 20 percent.
The S&P 500 fell more than 12% on Tuesday, the most since the president revealed global tariffs last Wednesday. It was also another day of practically unparalleled volume on the US equity markets, with more than 23 billion shares traded.
