Global Markets in Turmoil as Recession Fears Mount

Stock markets across Asia plummeted due to fears of a global trade war and potential U.S. recession. Investors anticipate U.S. interest rate cuts following escalating tariffs between the U.S. and China. The market turmoil caused significant losses, with oil prices dropping and currency values affected.

Stock markets in Asia plunged on Monday, as fears of an escalating global trade war drove Wall Street futures down and fueled concerns over a potential U.S. recession. Investors swiftly adjusted expectations for U.S. interest rates, pricing in up to five quarter-point rate cuts this year.

The market turbulence came amid rising U.S.-China trade tensions, with U.S. President Donald Trump indicating no deal would be made until the U.S. trade deficit is addressed. The ongoing tariff discord has already resulted in significant financial losses and heightened recession risks, according to JPMorgan economist Bruce Kasman, who places the likelihood of a downturn at 60%.

The ripple effects were felt globally, with Japan's Nikkei and South Korea's markets suffering steep declines, while oil prices continued their downward slide. Amid the market chaos, investors sought safe havens, driving Treasury futures up and pressuring currency values globally.

(With inputs from agencies.)