What's Affecting Markets Today
Asia-Pacific markets extended their sharp declines on Monday, as escalating global trade tensions triggered widespread risk aversion. U.S. President Donald Trump’s tariffs and China’s swift retaliation have fueled fears of a prolonged trade war, prompting a broad sell-off across the region.
Hong Kong’s Hang Seng Index led losses with a 10.37% plunge, while China’s CSI 300 dropped 6.31%. Japan’s Nikkei 225 fell 6.2% to an 18-month low, and the broader Topix slumped 6.5%, triggering circuit breakers in futures trading. South Korea’s Kospi shed 4.74%, and the Kosdaq fell 4.01%. Australia’s ASX 200 extended its fall to 3.87%, entering correction territory with an 11% decline from February highs. India’s Nifty 50 and Sensex dropped 3.85% and 5.29%, respectively.
In the U.S., futures continued to decline as hopes for diplomatic resolutions faded. Oil prices also tumbled, with WTI crude falling below $60 per barrel, the lowest since April 2021.
Wall Street ended last week sharply lower. The Dow fell 5.5%, the S&P 500 dropped 5.97%, and the Nasdaq entered bear market territory, down 22% from its December peak.
ASX Stocks
ASX 200 - 7,333.7 (-4.40%)
The Australian sharemarket is facing its steepest decline in five years, as global markets react to escalating trade tensions between the US and China. By 2pm AEST, the S&P/ASX 200 had fallen 4% or 305.3 points to 7362.5, recovering slightly from earlier losses exceeding 6%. If sustained, it would mark the largest one-day drop since May 2020.
The sell-off followed sharp losses on Wall Street, where the Nasdaq entered bear market territory. Markets in Asia also fell, with Hong Kong’s Hang Seng Index down more than 10%. The turmoil stems from China’s retaliatory tariffs of 34% on US imports, mirroring Washington’s levies and ahead of further US measures due Wednesday.
Risk aversion has hit all ASX sectors. BHP and Commonwealth Bank slumped over 6%, while energy stocks were hit hardest following Saudi Arabia’s crude price cut. Santos dropped 9.6%, and Ampol 8.1%. Iron ore weakness dragged Fortescue down 5.9%, and gold miners also declined.
Notable movers included Abacus Storage King, surging 19% on a takeover offer, and Challenger, which gained 7% following a strategic stake acquisition by TAL Dai-ichi Life.
Leaders
CMM Capricorn Metals Ltd (+5.40%)
CEN Contact Energy Ltd (+5.24%)
MCY Mercury NZ Ltd (+4.27%)
COL Coles Group Ltd (+3.50%)
WOW Woolworths Group Ltd (+3.31%)
Laggards
AOV Amotiv Ltd (-15.93%)
ZIP ZIP Co Ltd (-11.41%)
KAR Karoon Energy Ltd (-11.09%)
BRG Breville Group Ltd (-11.08%)
HMC HMC Capital Ltd (-10.35%)
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