HONG KONG — Major Asian stock markets experienced sharp declines on Monday, while gold prices surged to an all-time high, reflecting investor concern over rising global inflation and uncertainty in trade policy. U.S. stock futures and crude oil prices also moved lower.
In Tokyo, the Nikkei 225 dropped 4.1% to 35,617.56. Taiwan’s Taiex index fell 4.2%, and South Korea’s Kospi declined 3% to 2,481.12. The Hang Seng in Hong Kong lost 1.2% to 23,135.01, while China’s Shanghai Composite dropped 0.5% to 3,335.67. Australia’s S&P/ASX 200 finished the day down 1.7% at 7,843.40.
The declines followed mounting concerns over a combination of persistent inflation and a possible slowdown in U.S. consumer spending, partly attributed to escalating global trade disputes.
Gold prices climbed to nearly $3,150 per ounce, a new record, as investors moved assets into traditional safe havens. The increase coincides with volatility across equities and other risk-sensitive assets.
In Thailand, the SET index dropped 1.5% after a significant earthquake centered in Myanmar caused widespread damage. In Bangkok, a partially constructed 30-story building collapsed, leading to numerous missing construction workers. Shares of Italian Thai Development, the company managing the project, fell by 27%. Authorities in Bangkok have launched an investigation into the incident.
Globally, the focus remains on ongoing trade friction. Several Asian economies with trade surpluses with the United States remain under scrutiny by the U.S. Trade Representative. According to market analysts, nine out of the 21 countries currently under U.S. trade review are in Asia.
On Wall Street, the week ended with major losses. The S&P 500 fell 2% on Friday to 5,580.94—its fifth losing week out of the last six. The Dow Jones Industrial Average dropped 715 points, or 1.7%, to 41,583.90, while the Nasdaq Composite declined 2.7% to 17,322.99.
Several companies saw stock declines despite reporting stronger-than-expected earnings. Lululemon Athletica fell 14.2%, and Oxford Industries, the parent company of brands like Tommy Bahama and Lilly Pulitzer, saw a 5.7% drop.
Market analysts cited concerns that additional tariffs, expected to be announced later this week, could lead to reduced consumer and business spending. A University of Michigan survey released Friday showed that two-thirds of U.S. consumers anticipate rising unemployment over the next year, the highest level recorded since 2009.
In addition, an inflation report showed a slightly higher-than-expected increase in core prices last month, adding to concerns that high inflation may persist even if economic growth slows.
There is speculation that the Federal Reserve may consider interest rate cuts to support growth, although such a move could add upward pressure to inflation, which remains above the central bank’s 2% target.
Crude oil prices were also down early Monday. U.S. benchmark crude fell 4 cents to $69.32 per barrel, while Brent crude edged down 2 cents to $72.74 per barrel.
In currency trading, the U.S. dollar weakened to 149.02 Japanese yen from 149.84 yen, while the euro rose to $1.0839 from $1.0803.
Further developments are expected later this week as the U.S. government prepares to unveil a new round of tariffs, referred to by the administration as “Liberation Day,” aimed at several trading partners.
