(VOVWORLD) - The US’s reciprocal tariffs, ranging from 11% to 50% on imports from 86 countries and territories, officially took effect on April 9. In particular, Chinese goods face tariffs as high as 104%.
The move has sent shockwaves through global markets. At the close of today’s trading, Japan’s Nikkei index dropped over 3.9%, Hong Kong’s Hang Seng 0.35%; Taiwan’s Taiex (China) 5.79%, South Korea’s Kospi 1.74%, and Australia’s S&P/ASX 200 1.8%. In the ASEAN market, Thailand saw the steepest drop with the SET index tumbling 1.9%.
European stock markets also declined. The Stoxx 600 index, which tracks major firms across the region, slid 2.55% with banking, mining, and oil & gas leading the downturn. France’s CAC 40 dropped 2.6%, Germany’s DAX slipped 2.1%, and the UK’s FTSE lost another 2%.
Meanwhile, China’s CSI300 index edged up 0.64%, and the Shanghai Composite gained 0.98%, marking the second consecutive gaining session. The result is attributed to investors’ expectation that the Chinese government will soon roll out economic stimulus measures in response to US tariffs.
In currency markets, the US dollar continued to weaken. The USD Index (DXY) dropped 0.4% to 102.90, reflecting investor caution over potential Fed policy easing. The British pound fell 0.1% against the Euro.
Gold remained a safe-haven asset amid the global equity sell-off. The price of gold surged by over 28 USD to reach 3,010 USD per ounce on Wednesday.
India’s central bank on Wednesday cut its policy interest rate by 0.25%, down to 6%. New Zealand’s central bank also lowered its benchmark rate to 3.5%.