Asian stock markets opened higher on Tuesday, with Japan’s benchmark Nikkei 225 index surging 5.5%, recovering from a nearly 8% plunge the previous day. The rebound followed a turbulent session in US markets triggered by President Donald Trump’s warning of increased tariffs.
Within 30 minutes of opening, the Nikkei 225 had climbed to 32,819.08. Other Asian markets mirrored the positive trend: South Korea’s Kospi rose by 2%, while markets in Australia and New Zealand also opened strong.
Global Markets React to Volatility and Rumors
Monday had been a grim day for global investors. Hong Kong’s stock market dropped 13.2%—its steepest decline since the 1997 Asian financial crisis. Meanwhile, Wall Street saw sharp swings: the Dow Jones dropped by as much as 1,700 points before rebounding nearly 900 points later that morning. The S&P 500 moved from a 4.7% loss to a 3.4% gain before closing slightly down by 0.2%. The Nasdaq eked out a small 0.1% gain.
The brief US rally was sparked by a rumor that Trump might delay tariffs for 90 days. However, the White House swiftly labeled this as “fake news,” and markets fell again after Trump reaffirmed his intention to raise tariffs on China in retaliation for its own trade measures.
Why Tariffs Are Rattling Markets
Trump’s tariff policies have sparked fears of a global trade slowdown. While aimed at reviving American manufacturing and reducing the trade deficit, they have also introduced significant uncertainty into the global economy. Monday marked the third consecutive day of global market stress following Trump’s tariff announcement, made on what he referred to as “Liberation Day.”
Oil and Cryptocurrency Markets Feel the Pressure
Commodities and digital assets weren’t immune to the turbulence. US crude oil prices dipped below $60 per barrel—the lowest level since 2021. Bitcoin also experienced a sharp drop, falling below $79,000 after peaking above $100,000 in January.
Indian Markets Suffer Their Worst Day in Months
Indian stock markets were hit hard on April 7, with both the Sensex and Nifty recording their biggest single-day declines in 10 months. Concerns that Trump’s policies could tip the US into recession and drive up global inflation contributed to the fall.
The Sensex plummeted 2,226.79 points (2.95%) to close at 73,137.90, after dropping as much as 3,939.68 points (5.22%) intraday. The Nifty fell by 742.85 points (3.24%) to settle at 22,161.60, after hitting an intraday low of 21,743.65—a drop of 1,160.8 points (5.06%). It marked one of the worst trading days for Indian markets in the last five years.
