Media Wire Express Correspondent
In a dramatic start to the trading week, stock markets across China and much of Asia tumbled sharply on Monday, as escalating trade tensions between Beijing and Washington rattled investor confidence.
The benchmark indices in mainland China opened with a staggering 10% drop, sending ripples across the region and prompting fears of a broader financial crisis.
The collapse follows a weekend of high-stakes economic brinkmanship between the world’s two largest economies. The United States imposed sweeping new tariffs—over 50%—on Chinese imports. Beijing swiftly retaliated with its own set of aggressive tariffs on American goods, triggering widespread concern about a full-blown trade war that could derail global growth.
The fallout was immediate. Hong Kong’s Hang Seng Index nosedived by 9%, with key sectors such as banking, retail, and technology taking the hardest hits. Taiwan’s stock exchange also endured its worst day in decades, plunging by nearly 10%—its steepest single-day loss since 1990.
In mainland China, heavyweight tech firms like Tencent and Alibaba saw their share prices drop by 13% and 10% respectively, while banking giants and solar energy companies also posted double-digit losses. Investors across Asia rushed to offload stocks, fearing that neither side was prepared to back down.
The effects extended far beyond China. Japan’s Nikkei index dropped by almost 8%, while markets in South Korea, Singapore, and Australia also recorded sharp losses. Even the Chinese yuan weakened noticeably, falling to its lowest point since January, as investors fled to the relative safety of bonds and the U.S. dollar.
“This is not just a market reaction—it’s a signal of deeper anxiety about where the global economy is headed,” said Paul Chew, head of investment research at Phillip Securities. “When you combine high tariffs with poor consumer sentiment, you get a recipe for contraction.”
Banks were among the hardest hit. Shares of HSBC and Standard Chartered fell by more than 13% and 16% respectively—their worst performance since the 2008 financial crisis.
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While investors hope for some kind of policy support from Beijing in the days ahead, there is little sign that either side is ready to soften its stance. In fact, U.S. President Donald Trump doubled down on the tariffs, calling them a “necessary corrective” for what he described as decades of unfair trade practices.
The White House claims the tariffs are already pushing dozens of countries to the negotiating tablean argument that has done little to reassure investors, particularly those in Asia who are already grappling with slowing economies and fragile post-pandemic recoveries.
