Asian equity markets faced sharp losses on Wednesday as rising trade tensions between the U.S. and China rattled investor confidence. Japan’s Nikkei 225 led the declines, falling nearly 4% in early trading, while South Korea’s Kospi slipped into bear market territory after weeks of steady losses.
The downturn comes after the United States announced significant tariffs on Chinese imports, prompting an immediate retaliatory response from Beijing. The renewed friction between the world’s two largest economies has sparked fears of a broader economic slowdown across Asia.
Investors also digested regional responses, with some governments introducing short-term measures to stabilize financial markets. Meanwhile, market heavyweight stocks in technology and manufacturing sectors were hit hardest, reflecting concerns over disrupted supply chains.
As uncertainty builds, analysts warn that prolonged trade disputes may drag down growth across developing Asia, compounding the region’s existing economic challenges.
Index level at the time of writing this article:
- Nikkei 225: -2.7% at 32120
- Hang Seng: -2.8% at 19,560
- Taiwan Weighted: -1.56% at 18172
- KOSPI: -0.57% at 2321
- Sanghai Composite: -1.56% at 3096
- Gift Nifty: -0.74% at 22443
