Global Markets Shaken: Trade War Tariffs Roil Asia and Beyond

Major stock indexes in Asia plummeted due to President Trump's significant tariffs on China, initiating fears of foreign fund withdrawals and a broader global recession. Asian stocks, oil prices, and safe-haven currencies were heavily impacted by the escalating trade tensions, causing volatile market conditions worldwide.

Major stock indexes across Asia experienced significant declines on Wednesday following President Donald Trump's imposition of a hefty 104% tariff on Chinese imports. This move amplified concerns that foreign funds might be withdrawing from U.S. assets, particularly as a severe selloff in Treasuries took hold.

The U.S. dollar weakened against safe-haven currencies, yet China's onshore yuan remained marginally above its lowest level since 2007 amid the sharply escalating trade war. The market's recession fears resulted in a nearly 4% drop in oil prices, further extending the turmoil to European markets as well.

Analysts believe the ongoing U.S.-China trade tensions and volatile headlines regarding tariffs are contributing to heightened financial instability. The S&P 500 underwent a massive 4.2 percentage point swing, marking a four-day loss of market value unseen since the index's inception. The prospects of a protracted trade war between the world's two largest economies continue to overshadow global financial markets.

(With inputs from agencies.)