Asian markets slump on Donald Trump’s reciprocal tariffs; Japan's Nikkei hits eight-month low

Asian markets slumped on Thursday after US President Donald Trump announced reciprocal tariffs on over 180 countries. MSCI's broadest index of Asia-Pacific shares outside Japan fell more than 1%.

Japanese markets led losses in Asia, with the Nikkei share average slipping to an eight-month low. The Nikkei fell as much as 4.6% in early trading, dropping to 34,102.00 for the first time since August 7. The benchmark index recouped some losses, and was down 3%.

The broader Topix index dropped as much as 4.3% before recovering slightly to trade down 3.1%.

Among stocks, Toyota Motor shares declined 4.7%, Tokyo Electron share price plunged 5.8%, while Advantest stock price slumped 4.9%.

Chinese markets opened weak, with the CSI300 blue-chip index down 0.24%, while the Shanghai Composite Index was down 0.1%.

Meanwhile, among other Asian markets, South Korea’s Kospi index declined 1.57%, and the Kosdaq dropped 0.55%. Hong Kong’s Hang Seng index plunged 2%

Trump Tariffs

Trump announced a baseline 10% tariff on imports with far higher levies on some trading partners, particularly in Asia. Besides China’s 34% tax, Japan got a 24% tariff, Vietnam 46% and South Korea 25%. The European Union was hit with a 20% levy.

Indian Stock Market

The Indian stock market benchmark indices, Sensex and Nifty 50, are also expected to open lower on Thursday, tracking global market sell-off, after the US President Donald Trump’s reciprocal tariffs announcement. The trends on Gift Nifty also indicate a gap-down start for the Indian benchmark index.

The Indian rupee is also poised to fall at open, driven by the decline in Asian equities and currency markets.

(With inputs from Agencies)

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