The fear of future health in the world economy continues as President Trump's determined commitment to retaining President Trump's determined commitment to tariffs, as a determined commitment to fostering investors' concerns about inflation and consumer spending pullbacks.
The sale to Asian deal continued on Tuesday after the S&P 500 suffered a worst day on Monday.
The Asian market was almost low, with Japan's Nikko 225 index falling by around 2%, overwhelmingly overwhelmed by a massive decline in Japanese tech stocks. The stock markets in South Korea and Taiwan also fell by more than 1% in noon trading.
The Chinese stock market has improved slightly. Shares in Shanghai, Shenzhen and Hong Kong fell below 1% in morning trading.
Investors have been increasingly cautious about the US stock market in recent weeks as President Trump flip-flops with tariffs, causing chaos and uncertainty.
The growing anxiety about the inflationary effects of tariffs, coupled with a widespread, dark mood for the economy, provided a catalyst for a market divestment that investors have long been concerned about.
While current economic data remains strong, research by consumers, business leaders and economists is becoming more and more pessimistic. JPMorgan analysts say there is currently a 40% chance of a global recession.
The sale highlighted how the global markets are carefully analyzing the president's statements about the economy.
Analysts pointed to comments from Trump's interview. He aired Sunday when the economy said it was going through a “transition period” and refused to rule out the possibility of a recession. The Trump administration has offered little to alleviate investors' fears and continues to promote strict lines on tariffs for major US trading partners in Canada, Mexico and China.
In a research note on Tuesday, Takashima, executive economist at the Nomura Institute, said the financial markets were embellished by Trump's “unwavering” commitment to pushing tariffs despite the economic pain it could cause.
“Even if tariffs lead to inflation and economic degradation, President Trump is likely to hold former President Biden directly responsible, rather than acknowledging the shortcomings of his own economic policies,” Kiyoshi wrote.
The tech stock fell in the US on Monday. Tesla shares plummeted more than 15%. This is because investors are valuing the decline in sales and worrying that the company's CEO Elon Musk is distracted by his role in the Trump administration. Shares in Alphabet, Apple and Nvidia each fell by more than 4%.
Also, technology stocks fell in Japan, with Sony, SoftBank, Hitachi and Fujitsu down more than 4% during trading early on Tuesday morning. Other tech declines in Asia include chip giant Taiwanese semiconductor manufacturers and Taiwan's Apple supplier Foxconn, down 2%.
Stocks of Japanese automakers Toyota Motor and Honda Motor, as well as Korean automaker Hyundai Motor, have immersed slightly. Nissan Motor has struggled more than others due to poor sales and political headwinds, with shares falling more than 4% on Tuesday.
Japanese and South Korean automakers are expected to be particularly damaged by potential 25% tariffs on foreign cars that Trump could take effect immediately on April 2.
In a memo on Friday, Goldman Sachs said the stocks that make up the major stock indexes of Taiwan, South Korea and Japan will be most exposed in Asia if the Trump administration places universal tariffs on its trading partners.
Bruce Pan, an adjunct associate professor at Hong Kong Business School, said the Chinese market is out of stage with its US and other global counterparts. China's stocks have received comments on private sector support and entrepreneurship from top leaders from ambitious government targets, growth of around 5% and recent business-friendly comments.
“These factors help ease the headwinds that arise from the Trump administration's news flow,” he said.
Over the year, stocks in Chinese companies listed on the Hong Kong Stock Exchange have risen nearly 20% compared to the 4% slide of the S&P 500.
Late Monday, Delta Air Lines issued another warning signal about the deterioration of the economy. The airline has announced it has cut its profit forecasts for the first three months of the year, saying rising economic concerns among consumers are curtailing demand for air travel.
In a statement, Delta condemned the decline in demand for “a recent decline in consumers and a decline in corporate trust caused by an increase in macro uncertainty.”
