BANGKOK (AP) — Asian and European shares slid on Wednesday, with Japan’s Nikkei 225 closing almost 4% lower after launch of the latest set of U.S. tariffs, including a massive 104% levy on Chinese imports took effect.
Chinese markets advanced after regulators appeared to intervene, urging state-owned companies to buy shares.
Germany’s DAX lost 2.1% to 19,857.36. In Paris, the CAC 40 declined 2.1% to 6,949.92. Britain’s FTSE 100 gave up 2% to 7,753.42.
The future for the S&P 500 lost 0.7% while that for the Dow Jones Industrial Average was down 0.5%.
Markets have been wobbly for days, with investors flummoxed over what to make of President Donald Trump’s trade war.
On Tuesday, the S&P 500 dropped 1.6% after wiping out an early gain of 4.1%. That took it nearly 19% below its record set in February. The Dow Jones Industrial Average dropped 0.8%, while the Nasdaq composite lost 2.1%.
Stocks had rallied globally on Tuesday, with indexes up 6% in Tokyo, 2.5% in Paris and 1.6% in Shanghai. Any optimism or buying enthusiasm appeared to have dissipated by the time the sharply higher tariffs became reality.
The Nikkei 225 fell 3.9% to 31,714.03.
In Hong Kong, the Hang Seng rose 0.4% to 20,205.04, while the Shanghai Composite index reversed early losses, gaining 1.3%. to 3,186.81.
Taiwan led losses in Asia, as its Taiex plunged 5.8%. Big tech manufacturers were among the biggest decliners. Computer chip giant TSMC Corp. dropped 3.8% while iPhone maker Hon Hai Precision Industry plunged 10%.
South Korea’s Kospi lost 1.7% to 2,293.70, and the government said it would provide help for its beleaguered automakers.
The S&P/ASX 200 in Australia declined 1.8% to 7,375.00. Shares in New Zealand also fell.
In India, the Sensex declined 0.5% as the central bank cut its benchmark interest rate, while Bangkok’s SET shed 0.8%.
Analysts have been warning to expect more swings up and down in markets given the uncertainty over how long Trump will keep the stiff tariffs on imports, which will raise prices for U.S. shoppers and slow the economy. If they last a long time, economists and investors expect them to cause a recession. If Trump lowers them through negotiations relatively quickly, the worst-case scenario might be avoided.
Hope still remains on Wall Street that negotiations may be possible, which helped drive the morning’s rally. Trump said Tuesday that a conversation with South Korea’s acting president helped them reach the “confines and probability of a great DEAL for both countries.”
On Tuesday, Japanese stocks led global markets higher after the country’s prime minister, Shigeru Ishiba, appointed his trade negotiator for talks with the United States following a conversation with Trump.
