Trade War Sparks Massive Asian Stock Selloff

Asian stocks plunged as fears of a trade war-induced recession gripped investors, leading to a market selloff. U.S. economic growth concerns deepened after President Trump's comments on tariffs. Markets across Asia, including Japan and Taiwan, suffered significant losses, with Chinese and Hong Kong stocks also declining.

Asian stock markets experienced a sharp decline on Tuesday, extending a severe market selloff driven by escalating fears of a trade war impacting U.S. economic growth, potentially leading to a recession. Investors turned to the Japanese yen as a safe-haven currency amidst growing uncertainties.

President Trump's comments in a Fox News interview, where he acknowledged a 'period of transition' without responding to potential recession outcomes, further dampened risk sentiment, causing a drop in stocks and U.S. dollar and Treasury yields. Major Asian indices, including Japan's Nikkei and Taiwan's stock market, hit their lowest in months.

Even the previously robust Chinese stocks succumbed, with Hong Kong's Hang Seng Index also seeing losses. The S&P 500 and Nasdaq's drastic drops on Wall Street worsened the situation, wiping out $4 trillion from the S&P 500's peak. Despite early stabilization signs in European futures, the global financial landscape remains tense.

(With inputs from agencies.)