Asian stock markets experienced a dramatic plunge on Monday, triggered by investor panic over President Trump's escalating tariff war with China. The sell-off followed a brutal Friday on Wall Street and reflects growing anxieties about the potential damage to global economic growth.
The Nikkei 225 in Tokyo led the declines, initially plummeting nearly 8% before stabilizing to a 7.1% loss at 31,375.71. Other key Asian markets followed suit, with South Korea's Kospi index down 5.5% to 2,328.52 and Australia's S&P/ASX 200 tumbling 6.3% to 7,184.70.
Concerns about further losses in the US market also weighed heavily on sentiment. US futures indicated a likely continuation of the downturn, with futures contracts for the S&P 500, Dow Jones Industrial Average, and Nasdaq all showing significant losses of 4.2%, 3.5%, and 5.3% respectively.
The sharp decline underscores the market's sensitivity to the ongoing trade tensions between the US and China and raises questions about the potential for a broader global economic slowdown. Investors are now closely watching for any signs of de-escalation or further escalation of the trade conflict.