Asian shares tumbled on Monday with benchmarks in Tokyo and Taiwan falling more than 4%, while the price of gold hit a record high at nearly 3,150 dollars an ounce.
Investors have pulled back and sought traditional safe havens like gold as worries build over the deepening trade war that has escalated under US President Donald Trump.
US futures and oil prices were lower.
US President Donald Trump talks to reporters as he walks on the south lawn of the White House, in Washington DC (Jose Luis Magana/AP)
Thailand’s SET lost 1.5% after a powerful earthquake centred in Myanmar rattled the region, causing widespread destruction in the country, also known as Burma, and less damage in places like Bangkok.
Shares in Italian Thai Development, developer of a partially built 30-story high-rise office building under construction that collapsed, tumbled 27%.
Bangkok’s governor said authorities would investigate the cause of the disaster, which left dozens of construction workers missing.
Globally, the trade war is the abiding focus.
Many of the countries that run trade surpluses with the US and depend heavily on export manufacturing are in Asia, Stephen Innes of SPI Asset Management said in a commentary.
“Asia is ground zero. Of the 21 countries under USTR (US Trade Representative) scrutiny, nine are in Asia,” he noted.
Tokyo’s benchmark fell 4.1% to 35,617.56, while the Hang Seng in Hong Kong lost 1.2% to 23,135.01. The Shanghai Composite index declined 0.5% to 3,335.67.
In South Korea, the Kospi fell 3% to 2,481.12, while Australia’s S&P/ASX 200 sank 1.7%, closing at 7,843.40. Taiwan’s Taiex lost 4.2%.
A currency trader works under an electronic stock board at a foreign currency trading firm in Tokyo (Kyodo News via AP)
On Friday, the S&P 500 dropped 2% to 5,580.94, for one of its worst days in the last two years. It was its fifth losing week in the last six.
The Dow Jones Industrial Average sank 715 points, or 1.7%, to 41,583.90, and the Nasdaq composite fell 2.7% to 17,322.99.
Lululemon Athletica led the market lower with a drop of 14.2%, even though the seller of athletic apparel reported a stronger profit for the latest quarter than analysts expected.
Oxford Industries, the company behind the Tommy Bahama and Lilly Pulitzer brands, likewise reported stronger results for the latest quarter than expected but still saw its stock fall 5.7%.
One of the main worries hitting Wall Street is that Mr Trump’s escalating tariffs may cause US households and businesses to freeze their spending.
Even if the tariffs end up being less painful than feared, all the uncertainty may filter into changed behaviours that hurt the economy.
Stock markets worldwide appear shaky as a Wednesday deadline approaches for more tariffs.
Mr Trump has dubbed it “Liberation Day” when he will roll out tariffs tailored to each of the US’ trading partners.
In other dealings early on Monday, US benchmark crude oil lost four cents to 69.32 dollars per barrel. Brent crude oil fell two cents to 72.74 dollars per barrel.
The US dollar fell to 149.02 Japanese yen from 149.84 yen. The euro rose to 1.0839 dollars from 1.0803 dollars.