Global Markets in Flames: Donald Trump’s tariff war has set the global stock markets on fire. All Asian markets, including India, witnessed a massive sell-off amid growing fears of a global recession and escalating trade tensions.
As a result, the MSCI Asia Pacific Index fell 7.9% – the biggest drop since October 2008. Tech giants like TSMC, Tencent and Sony suffered heavy losses.
In India, the BSE Sensex fell by over 3,000 points during early trade, while the Nifty 50 fell by 919 points.
Hong Kong’s Hang Seng index fell 10.7%, its worst performance since the global financial crisis. Taiwan’s tech-heavy index dropped 9.8%, the biggest one-day drop in its history.
Major indexes in Japan and South Korea also dropped more than 4%. Markets in Indonesia, Thailand and Vietnam were closed for holidays but heavy losses were expected there too.
Trump’s Tariff Strike and China’s Retaliation Trigger Global Markets in Flames
The main reason for the huge fall in the market is the imposition of tariffs by US President Donald Trump and the tough retaliatory measures taken by China. The escalating trade war has further increased the fears of a global recession.
Jun Bei Liu, founder of Australian hedge fund TenCap, said “markets have really surrendered. It’s not just about the trading sector – there’s a broad sell-off across all sectors.”
Global Markets in Flames: Jim Cramer Warns of 1987-Style Crash
Renowned financial analyst Jim Cramer has warned that global markets are heading toward “Black Monday 2.0.” He said President Trump’s sweeping tariff decision and rising global tensions are creating the perfect storm for a major collapse.
Cramer believes that unless Trump takes constructive steps to mitigate the situation, the world could see a market decline on the scale of Black Monday of 1987. Given that Trump does not appear to be backing down from his decisions, the threat is becoming increasingly real.
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