Asian Markets Reel Amid Trade War Fears

Asian stocks plunged following Wall Street's downturn, fueled by fears of a trade war sparking a U.S. recession. President Trump's comments on tariffs and a 'period of transition' heightened economic concerns, leading investors to seek safety in the Japanese yen and other safe-haven assets.

Asian stocks experienced a sharp decline on Tuesday, mirroring Wall Street's downturn, as escalating trade war concerns raised fears of a potential U.S. recession. Investors fled to safe-haven assets, including the Japanese yen, amid growing economic uncertainty.

President Donald Trump's remarks in a Fox News interview about a 'period of transition' failed to reassure investors, instead exacerbating worries about a recession due to newly imposed tariffs. This sentiment contributed to significant drops in key indices: the S&P 500 fell 2.7%, while the Nasdaq faced its largest decline since September 2022 at 4.0%.

The Asian market followed suit, with Japan's Nikkei and Taiwan stocks dropping around 3%, and MSCI's Asia-Pacific index outside Japan falling more than 1%. Even the robust Chinese market couldn't escape, with leading indices recording losses. European market indicators also suggested a continued downward trend due to persistent investor apprehension.

(With inputs from agencies.)