Why do Asian markets see “blean”?

Asian stock markets decline when shocked by US President Donald Trump continues to talk worldwide.

The main indexes from Shanghai to Tokyo and Sydney to Hong Kong were plunged when they opened on Monday. “This is a bloody bath,” said one BBC analyst.

As a region that produces so many goods sold worldwide, Asian countries and territories are subjected to tariffs directly.

They are also particularly sensitive to the influence of fears that the global trade war can cause slowing or even recession in the largest economy in the world.

In the afternoon, the Nikkei 225 225 Japanese index was decreased by 6%, ASX 200 in Australia was 4% lower, and Kospi in South Korea was 4.7% lower.

The preferences in the mainland China, Hong Kong and Taiwan were deteriorated when investors caught up with big downs in other markets when they were closed on public holidays.

The Shanghai composite fell by more than 6%, while Hang Seng and Taiwan weighed the index shipped by approximately 10%.

“Tariffs feed on expectations around inflation and recession,” said Julia Lee, the head of the FTSE Russell, a subsidiary of the London Stock Group.

Goldman Sachs raised its recession estimate in the US over the next 12 months to 45% – compared to a preliminary estimate of 35% – since the Giant Investment Bank reduced the economic growth forecast for the country.

Other firms on Wall -Strito also revised their recession forecasts as a result of Trump’s tariff announcement. Now JPMorgan sees 60% chances of the United States and the global recession.

A significant slowdown in the US economy will have serious consequences for Asian exports, as the US is such an important market for goods from the region.

“Asia carries the main blow to the tariff hiking. Although there may be a place for negotiations, there will be a new higher tariff regime,” the chief economist of the Asia -Tzakhakan region in the Vanguard investment firm.

“This is negative for the world and Asian economy, especially in small open economies, both in short and long term.”

Countries from Vietnam to Bangladesh became very sharp in the US as an export market.

Trump’s announcement last week included a 46% tariff in Vietnam and 37% on Bangladesh.

Several major American brands produce goods in Vietnam, including Nike and lululemon.

Bangladesh exports $ 8.4 billion (6.5 billion pounds) to the USA per year, in accordance with the trade body of the Bangladesh and Exporters Association.

“Asia will probably feel the disproportionate major connection with this shock because Asia sends more exports to the US than other markets,” said Frank Lavin, a former deputy international trade in the US Ministry.

On Friday, Global Stock Market AwakenedAfter China went to the tariffs announced by Trump.

All three major stock indices in the United States decreased by more than 5%, and the S&P 500 decreased by almost 6%, and since 2020 has reduced the worst week for the US stock market.

In the UK, the FTSE 100 was plunged by almost 5% – its steady drop in five years, while exchanges in Germany and France faced similar decline.

Ms. Lee also emphasized that the global market on the stock market looks like to continue: “Today’s trade in the United States is a lower point at the next rigid session on Wall -States tonight.”

Global stock markets have lost trillion in value because Trump has announced a wide 10% import tax on goods from each country, as well as the products of dozens, including key trading partners such as China, European Union and Vietnam, which are facing much larger tariffs.