Asian Shares Resume Downtrend As US Tariffs Take Effect

(RTTNews) - Asian stocks resumed losses on Wednesday as U.S. President Donald Trump pressed ahead with sweeping new global tariffs, including over 100 percent in levies against Chinese goods.

Gold prices regained strength as the dollar weakened on fears of a potential U.S. recession.

The Treasury yield curve steepened, with the two-year note outperforming longer-dated debt amid speculation that the Federal Reserve may need to speed up rate cuts.

China's yuan hit a record low while the Japanese yen and Swiss franc attracted safe haven buying.

Oil prices extended a brutal sell-off to reach their lowest in more than four years on looming demand concerns fueled by the tariffs war between the U.S. and China.

China's Shanghai Composite index jumped 1.31 percent to 3,186.81 as Trump's 104 percent duties on Chinese imports kicked in and Beijing vowed to take resolute and effective measures to safeguard its rights and interests. Hong Kong's Hang Seng index ended 0.68 percent higher at 20,264.49.

Japanese markets tumbled in a broad sell-off as Trump's "reciprocal" tariffs on dozens of countries took effect. The Nikkei average fell 3.93 percent to close at 31,714.03, while the broader Topix index settled 3.40 percent lower at 2,349.33.

Tech stocks suffered heavy losses, with SoftBank Group, Advantest and Tokyo Electron plummeting 6-8 percent.

Seoul stocks fell sharply, with the Kospi average falling 1.74 percent to close below the 2,300 mark for the first time in 18 months.

Australian markets joined a global sell-off, with energy and resource stocks pacing the declines. The benchmark S&P/ASX 200 slumped 1.80 percent to 7,375 while the broader All Ordinaries index closed down 1.85 percent at 7,561.70.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index dropped 0.71 percent to 11,806.55 as the country's central bank cut its benchmark rate, as widely expected, and signaled a greater readiness to lower borrowing costs further.

U.S. stocks reversed a strong early rally to end sharply lower overnight as the White House said that it expects 104 percent tariffs on China to go into effect on Wednesday, when Trump's other "reciprocal tariffs" are also set to take effect.

The S&P 500 tumbled 1.6 percent to end below 5,000 points for the first time in almost a year, losing $5.83 trillion in market value and marking its steepest four-day drop since the index was created in the 1950s.

The tech-heavy Nasdaq Composite plummeted 2.2 percent and the Dow shed 0.8 percent.