New Delhi [India], April 3 (ANI): Asian stock markets experienced significant selling pressure on Thursday following an announcement from US President Donald Trump regarding retaliatory tariffs imposed on several nations, including India. This action generated widespread uncertainty, causing substantial drops in key indexes throughout the area.
The Japan Nikkei 225 index decreased by 2.69 percent, whereas the Hong Kong Hang Seng index went down by 1.80 percent. Additionally, South Korea’s KOSPI index saw a decline of 1.3 percent.
The unfavorable mood wasn’t confined to Asia; it extended to U.S. stock market futures, which signaled some level of unease. Specifically, Dow Jones Futures dropped by 1.78 percent, suggesting that the American markets too responded negatively to the tariff news.
Indian stock market futures were also under pressure. Gift Nifty futures declined by 1.11 percent before the opening of the market on Thursday, suggesting that Indian markets might open lower in response to the global downturn.
Ajay Bagga, an authority on banking and markets, informed ANI that what was previously uncertain in the markets has solidified into a guaranteed period of economic and financial stress. He stated, “What once seemed uncertain is now definitively leading to economic and market distress. Initially, people tend to seek refuge in safer investments and divest from risky ones. This situation could affect India through several channels: a stronger U.S. dollar, potential decreases in export volumes and profit margins, and shifts in emerging-market investment portfolios as capital moves towards secure options such as gold, the Japanese yen, Swiss francs, and Japanese governmental debt instruments.” --- The original content with preserved meaning but varied structure and vocabulary has been provided above.
Bagga cautioned that should currency wars start, with China devaluing its currency to counteract the tariffs, this could lead to increased withdrawals from stock markets along with subsequent drops in their values.
The China Internet ETF traded offshore has dropped by 6 percent, whereas the Vietnam Offshore Country ETF has experienced an even steeper decrease of 10 percent today.
US President Donald Trump announced new import tariffs on Wednesday (local time), outlining the rates to be imposed on countries around the world, with India facing a 26 percent tariff.
Market participants are now closely watching global developments as further escalations in trade tensions could lead to additional volatility in the financial markets. (ANI)