Japan’s Nikkei 225 entered correction territory Monday, losing nearly 12% from its December high. Asia-Pacific markets plunged ahead of U.S. President Donald Trump’s fresh round of tariffs, which is expected later in the week. The benchmark ended the day at 35,617.56. The broader Topix index fell 3.57% to 2,658.73.
South Korea’s index closed 3% lower at 2,481.12, while the small-cap Kosdaq declined 3.01% to 672.85. Australia’s S&P/ASX 200 ended the day 1.74% lower at 7,843.40 ahead of Tuesday’s Reserve Bank of Australia policy meeting. The central bank is widely expected to hold interest rates steady at 4.1%.
Mainland China’s Shanghai Composite lost 0.71% to close at 3,887.31, while Hong Kong’s Hang Seng Index was down 1.09% as of its final hour of trade. China’s official PMI data showed manufacturing activity in March, in line with economists’ predictions and slightly higher than the 50.2 reading in the previous month. Indian markets were closed for a public holiday.
Stocks sold off sharply last Friday amid growing uncertainty on U.S. trade policy and a bleak inflation outlook. The Dow Jones Industrial Average closed down 715.80 points, or 1.69%, at 41,583.90. The S&P 500 shed 1.97% to 5,580.94, ending the week down for the fifth time in the last six weeks.
The Nasdaq Composite plunged 2.7% to settle at 17,322.99. Shares of several technology giants dropped, with Google-parent Alphabet losing 4.9%. Shares of CK Hutchison fell as much as 4.7% Monday due to uncertainties over a deal to sell its ports near the Panama Canal to a group led by BlackRock.
The sale has been delayed but not called off. CK Hutchison has faced increasing criticism from China regarding its decision to sell most of its $22.8 billion port business to the U.S.-led group.
Asia markets plunge on tariff fears
The sale is expected to garner more than $19 billion in cash. Hong Kong’s Hang Seng Tech Index dropped 2.82%, entering correction territory amidst a broader market sell-off. The worst-performing stocks included Alibaba, which fell 6.15%, Tencent, which dropped 5.01%, and Meituan, which lost 4.75%.
Despite the drop, the index has still been up 20.27% since the start of the year. The Securities and Exchange Commission of Thailand reported that the country’s stock market and payment services are operating normally following a powerful earthquake in neighboring Myanmar that toppled a skyscraper under construction in Bangkok. The benchmark index fell over 1%.
Bank of Thailand Deputy Governor Roong Mallikamas noted that financial institutions have been instructed to extend special debt relief for disaster-affected borrowers. Gold prices crossed the $3,100 threshold to hit a fresh record high of $3,106.34 per ounce at 11 a.m. Singapore time on Monday. The precious metal has experienced a price surge as investors seek safe haven amidst concerns about U.S. President Donald Trump’s impending tariffs.
SoftBank shares fell as much as 5.51% Monday as Japan’s markets slumped on tariff worries amidst a broader drop in Asia markets. The investment holding company’s shares have been trading in negative territory for two straight sessions, also weighed down by a general sell-off in tech stocks. China’s manufacturing activity in March expanded at its fastest pace in a year, signaling that Beijing’s stimulus measures are helping to prop up economic recovery despite looming U.S. tariffs.
According to the data, the official PMI came in at 50.5 in March, in line with estimates. Japan’s factory output rose 2.5% in February, reversing a decline from the previous month. This exceeded the estimated 2.3% increase, driven by machinery and electronics parts production.
However, retail sales rose by just 1.4%, below the 2% forecast and the 4.4% in January. Renesas Electronics plunged 9.38% in early trade on Monday, leading losses in Japan’s benchmark index. The semiconductor manufacturing company has been in negative territory for two straight sessions, following comments from CEO Hidetoshi Shibata on the prolonged slump in the global semiconductor market.
