- Japan stocks extend declines as Trump tariffs roil markets; Nikkei falls over 2%
Asia-Pacific markets extended declines on Friday, tracking steep losses on Wall Street after U.S. President
Donald Trump’s tariffs rattled global markets. Japan’s Nikkei 225 fell 2.07% while the Topix declined 2.69%.
South Korea’s Kospi slipped 1.03% and the small-cap Kosdaq was 0.30% higher after the country’s
Constitutional Court upheld the impeachment of President Yoon Suk Yeol, ousting him from office. The decision
now starts a 60-day countdown where a presidential election must be held to select the next president. Prime
Minister Han Duck-Soo has been reinstated as acting president in the meantime. - Dow nosedives 1,600 points, S&P 500 and Nasdaq drop the most since 2020 after Trump’s tariff
onslaught
Stocks plummeted Thursday, sending the S&P 500 back into correction territory for its biggest one-day loss
since 2020, after President Donald Trump unveiled sweeping tariffs, raising the risk of a global trade war that
plunges the economy into a recession. The broad market index dropped 4.84% and settled at 5,396.52, posting
its worst day since June 2020. The Dow Jones Industrial Average tumbled 1,679.39 points, or 3.98%, to close at
40,545.93 and mark its worst session since June 2020. The Nasdaq Composite plummeted 5.97% and ended at
16,550.61, registering its biggest decline since March 2020. The slide across equities was broad, with more than
400 of the S&P 500’s constituents posting losses. Thursday’s moves sent the S&P 500 to its lowest level since
before Trump’s election win in November. The benchmark now sits about 12% from its record close
touched in February. - Eight OPEC+ producers accelerate crude oil output hikes, pushing oil prices 6% lower
Eight key OPEC+ producers on Thursday agreed to raise combined crude oil output by 411,000 barrels per day,
speeding up the pace of their scheduled hikes and pushing down oil prices. Saudi Arabia, Russia, Iraq, UAE,
Kuwait, Kazakhstan, Algeria, and Oman met virtually to review global market conditions and decided to raise
collective output by 411,000 barrels per day, starting in May. The group was widely expected to implement an
increase of just under 140,000 barrels per day next month. The Ice Brent contract with June delivery was
trading at $70.50 per barrel down 5.94% from the Wednesday close. The front-month May Nymex WTI contract
was at $67.11 per barrel, 6.41% lower. - Gold eases after record high on knock-on effect of wider selloff
Gold prices trimmed losses on Thursday after falling over 2% from an all-time high, as a wider market selloff
triggered by U.S. President Donald Trump’s import tariffs infected bullion traders. Spot gold fell 0.85% to
$3,106.99 after scaling to a record high of $3,167.57 earlier in the session. U.S. gold futures settled 1.4% lower
at $3,121.70. Traders attributed the dip to some profit-taking and margin calls in other asset classes likely
prompting investors selling some of their gold holdings to cover losses. Silver slipped 5.9% to $32.01, its lowest
since March 4. While it usually follows gold, silver is more exposed to wider market fluctuations considering its
industrial applications. - Euro, yen surge vs. dollar as investors grapple with tariff aftermath
The euro and the Japanese yen soared against the dollar on Thursday, as investors grappled with how U.S.
President Donald Trump’s far-reaching tariffs will impact global trade and economic growth. Investors continue
to flock to safe-haven units such as the yen and Swiss franc as the dollar weakened to six-month lows against
both those currencies. The euro, hitting a six-month high, was last trading up 2.4% at $1.1109, and saw its
biggest intraday advance since December 2015. The dollar fell 2.6% on the Japanese yen to 145.45, and sank
3.03% on the Swiss franc to 0.8554 franc. Both safe havens were at their strongest on the greenback in six
months. Britain’s pound was up 1.11% to $1.3155. - China’s response to new U.S. tariffs will likely focus more on stimulus, and building trade ties
China’s reaction to new U.S. tariffs will likely focus on domestic stimulus and strengthening ties with trading
partners, according to analysts based in Greater China. Chinese exports to the U.S. this year had already been
hit by 20% in additional tariffs, raising the total rate on shipments from China to 54%, among the highest levied
by the Trump administration. The effective rate for individual product lines can vary. China’s top leaders in
early March announced they would pursue a target of around 5% growth in gross domestic product this year,
a task they emphasized would require “very arduous work” to achieve. The finance ministry also hinted it
could increase fiscal support if needed. - France’s Macron calls for suspension of investment in US after tariffs
French President Emmanuel Macron called on Thursday for European companies to suspend planned
investment in the United States after U.S. President Donald Trump announced sweeping global tariffs on
American imports. “Investments to come or investments announced in recent weeks should be suspended
until things are clarified with the United States,” Macron said during a meeting with French industry
representatives. The comments come weeks after French shipping firm CMA CGM announced plans to invest
$20 billion in the U.S. to build shipping logistics and terminals, a plan that was hailed by President Trump at the
time, and mentioned again in his Wednesday speech unveiling the tariffs. French electrical equipment supplier
Schneider Electric said late last month it would invest $700 million in the country to support U.S. energy
infrastructure to power AI growth. - Trump open to tariff negotiations, contradicting White House aides
Markets dropped the day after President Donald Trump imposed a far-reaching “reciprocal tariff” policy,
including a 10% baseline tariff on almost every country. The plan slaps much steeper tariff rates on many
countries, including 34% on China, 20% on the European Union, 46% on Vietnam and 32% on Taiwan.
Economists and U.S. trade partners are raising questions about how the White House calculated the tariff rates
it claimed other countries “charge” the U.S. Experts continue to debate the full potential effects. New U.S.
tariffs on auto imports also took effect overnight, prompting Stellantis to pause production at its plants in
Canada and Mexico. Trump now says he is open to negotiations, contradicting White House aides who insist
the sweeping tariffs are not a bargaining tactic. European stocks closed the day 2.7% lower. - Apple sheds over $300 billion in tariff-fuelled sell-off, notches worst drop since March 2020
Shares of Apple notched their worst day since March 2020 after the stock cratered over 9%, erasing over $310
billion from its market cap. The largest risk, according to analysts, centres on the iPhone maker’s overseas
production hubs, which are particularly vulnerable to the tariffed countries. As trade tensions escalate, Apple
has moved to increase its supply chain beyond just China, boosting manufacturing in places like India and
Vietnam. But with the new tariff announcements set to impact those countries too, there’s now limited room
for reprieve. - Goodyear Tire a rare bright spot as tariffs roil markets
Goodyear Tire & Rubber Co. shares climbed nearly 12% on Thursday, outperforming in a market grappling with
the implications of President Trump’s reciprocal tariffs. Gains appear to be related to the company’s unique
position in the tariff war and massive new tariffs on tire-importing countries. Despite the competitive pressure
from low-cost imports, particularly from Thailand, Goodyear’s strategic shift towards premium product
offerings and reducing lower-end SKUs is anticipated to mitigate long-term impacts. The ongoing
modernization of its Oklahoma facility, Goodyear’s largest in North America, further underscores the
company’s ability to adjust capacity to meet domestic demand. - Jeep and Chrysler maker Stellantis to furlough 900 US workers
Stellantis said that it would furlough 900 workers at five plants in the US and temporarily shut production in
Canada and Mexico, marking the first major fallout on American automotive workers from President Donald
Trump’s newly launched tariff war. The manufacturer of the Jeep, Ram and Chrysler brands announced the
temporary job cuts only seven hours after a 25 per cent tariff on all foreign cars imported into the US went into
effect. Analysts have warned of massive disruption to global automotive supply chains and job risks as prices
of US vehicles rise and sales of vehicles decline. - Shares of fabless chip and software maker Broadcom fell 9.2% in the afternoon session after “reciprocal
tariffs” announcement on all US imports
The shares closed the day at $154.07, down 10.4% from previous close. Broadcom is down 33.5% since the
beginning of the year, and at $154.35 per share, it is trading 38.3% below its 52-week high of $250 from
December 2024. Outside of the Mag Seven, chip stocks faced similar declines, despite the exemption of
semiconductors from Trump’s additional tariffs. - Volvo to boost Mexico plant investment to $1 billion, minister says
Sweden’s AB Volvo will increase its investment in the truck factory it is building in the northern Mexican state
of Nuevo Leon to $1 billion, Mexico’s Economy Minister Marcelo Ebrard said on Thursday. Volvo announced in
August that it had chosen a site on the outskirts of the industrial hub Monterrey in northern Mexico as the site
for its new North American heavy-duty truck factory, putting construction costs at the time at $700 million.
Production at the factory is slated to begin in 2026. - Xiaomi delivers record cars in March as winners emerge in China’s EV race
Xiaomi delivered a record number of electric vehicles in March, exceeding 29,000 units. Xpeng and Leapmotor
saw deliveries more than double in March from the same period last year. Nio and Zeekr lag behind in deliveries
as they struggle to reach the 20,000-unit mark. The same trends are observed in the automakers’ deliveries for
the quarter that ended March 31. It’s a sign of how some automakers are pulling ahead, while BYD remains
the market leader by far.
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