Market Declines Amid Ongoing Fears Over Tariff Impact on Growth

Investor anxiety persisted on Monday over tariffs imposed by President Trump, leading to declines in Asian market indexes and a weakening of the U.S. dollar.

Data reflects market conditions as of midnight Eastern Time on Monday.

Prepared by LSEG Data & Analytics

By Karl Russell and Pablo Robles

Reporting from Seoul

Global Market Reactions

On Monday, the aftershocks of the U.S. trade conflict, spearheaded by President Trump, were felt across global financial markets. Japan's equities saw a downturn, the American dollar weakened further, and oil prices continued their descent.

As U.S. stock exchanges prepared to reopen following the Good Friday closure, indicators suggested a lower starting point, with S&P 500 futures lagging by nearly 1%.

Asian Market Performance

Japan’s primary index, the Nikkei 225, decreased by 1.2% in its initial trades. It had previously ended the last week positively due to optimism about a potential trade accord with the U.S. Similarly, Taiwan's main index dropped 1.4%, whereas the Shanghai Composite saw a modest rise of 0.31%. The stock markets of Japan and Taiwan, both closely linked to U.S. trade, have been among Asia's poorest performers this year.

Oil and Currency Movements

Oil prices, which have plummeted up to 24% since mid-January, decreased by roughly 1.5% on Monday, with Brent crude priced near $67 per barrel. As an economic growth indicator, oil prices have been pressured by worries that Trump’s tariffs could impede global trade.

Meanwhile, the U.S. dollar's value fell nearly 1% against the Japanese yen, marking its lowest point since last September. Against the euro, the dollar faced a similar decline, reaching the lowest level in over three years.

Win Thin, managing director at Brown Brothers Harriman, commented in a note that the weakening of the dollar is expected to persist. He added, however, that the recent strength in certain currencies might be temporary due to anticipated weakening in economic growth.