Asia and European shares sink as US tariffs take effect
Cherry blossoms bloom across a street from the Tokyo Stock Exchange building in Tokyo. Japan’s Nikkei closed 3.9 percent lower on April 9 as US tariffs take effect. (AP Photo/Hiro Komae)
Asian and European shares slid on Wednesday, with Japan’s Nikkei 225 dipping more than 5 percent, as the latest set of US tariffs including a massive 104 percent levy on Chinese imports took effect.
Japan’s Nikkei 225 closed 3.9 percent lower, at 31,714.03. Hong Kong’s Hang Seng rose 0.7 percent, while the Shanghai Composite index closed 1.3 percent higher.
Thailand’s benchmark also rose, apparently due to speculation that Beijing might be preparing to hold talks with the Trump administration.
READ: Trump presses on with 104% tariffs on China
The unconfirmed rumors helped push the future for the S&P 500 up 0.3 percent, while that for the Dow was unchanged.
Taiwan led the losses in Asia, as its Taiex plunged 5.8 percent. In India, the Sensex declined 0.5 percent as the central bank cut its benchmark interest rate, while Bangkok’s SET shed 0.8 percent.
South Korea’s Kospi lost 1.7 percent to 2,293.70, and the government said it would provide help for its beleaguered automakers. The S&P/ASX 200 in Australia declined 1.8 percent to 7,375.00. Shares in New Zealand also fell.
European markets extended their losses. Germany’s DAX slipped 2.5 percent to 19,762.13. In Paris, the CAC 40 declined 2.6 percent to 6,917.13. Britain’s FTSE 100 gave up 2.6 percent to 7,704.82.
China said it will take “resolute measures” to defend its trading rights, but gave no details on how it will respond to US moves.
On Tuesday, the S&P 500 dropped 1.6 percent after wiping out an early gain of 4.1 percent. That took it nearly 19 percent below its record set in February. The Dow Jones Industrial Average dropped 0.8 percent, while the Nasdaq composite lost 2.1 percent.
