Bangkok: Asian stock markets nosedived on Monday following a historic sell-off on Wall Street, triggered by heightened trade tensions between the United States and China. The Nikkei 225 in Tokyo plunged nearly 8% at opening, stabilising slightly to a 6% loss by midday. Japan’s Topix futures trading was briefly suspended after triggering circuit breakers, reflecting the scale of the panic.

Heavy losses were reported across the region: Hong Kong’s Hang Seng dropped 9.4%, Shanghai’s Composite Index fell 6.2%, South Korea’s Kospi shed 4.1%, and Australia’s ASX 200 lost 3.8%. Financial stocks led the decline in Tokyo, with Mizuho Financial Group and Mitsubishi UFJ losing over 9% each.

The turmoil followed Friday’s dramatic slide on Wall Street, where the S&P 500 fell 6%, the Dow Jones 5.5%, and the Nasdaq 5.8%—deepening fears of a global recession. Futures for all three major US indices pointed to further losses.

The sell-off came after Beijing retaliated against President Donald Trump’s 34% tariff hike by announcing identical tariffs on all US goods, effective 10 April. This tit-for-tat escalation raised fears of a prolonged and economically devastating trade war between the world’s two largest economies.

E-commerce giants Alibaba and Tencent also felt the heat, losing 10% and 9.4% respectively. Meanwhile, oil prices fell sharply, with US crude down 4% to $59.49 a barrel and Brent crude at $63.33.

Analysts warned that market volatility is likely to persist, with investors bracing for further retaliatory measures. Despite reassurances from Trump and his advisers—who claimed this was “a great time to get rich”—market observers like Citi’s Stuart Kaiser warned of more downside risk.

As the Federal Reserve weighs the inflationary impact of tariffs against possible rate cuts, the world watches anxiously for signs of a resolution. For now, investor sentiment remains deeply shaken by the prospect of a drawn-out economic conflict.