BBC Pidgin of Monday, 7 April 2025

Source: BBC

Tariffs: Why 'bloodbath' dey on Asian markets?

Major indexes from Shanghai to Tokyo and Sydney to Hong Kong drop on Monday Major indexes from Shanghai to Tokyo and Sydney to Hong Kong drop on Monday

Asian stock markets don fall as di shockwaves from US President Donald Trump tariffs kontinu to affect di world.

Major signs from Shanghai to Tokyo and Sydney to Hong Kong drop on Monday. "Na bloodbath," one analyst tell BBC.

As region wey dey manufacture most of di goods wey dem dey sell worldwide, di tariffs hit Asian kontris and territories directly.

Dem also dey fear say if di mata lead to global trade war, e fit trigger a slowdown or even recession for di world biggest economy.

Japan Nikkei 225 benchmark index bin close down by 7.8%, di ASX 200 for Australia lost 4.2% and di Kospi for South Korea end 5.6% lower.

Slumps for mainland China, Hong Kong and Taiwan bin worsen as investors catch up wit di big falls show for oda markets on Friday as dem close for public holidays.

Di Shanghai Composite bin close at 7.3% lower and Taiwan Weighted Index lost 9.7%.

Di Hang Seng bin dey down by 12.5% for afternoon trading.

"Tariffs dey feed into expectations around inflation and a recession," Julia Lee, head of client coverage for FTSE Russell, one subsidiary of di London Stock Exchange Group tok.

Goldman Sachs now dey predict say 45% chance dey say US go fall into recession in di next 12 months – e go go up from one previous estimate of 35% - as di investment banking giant lower dia economic growth forecast for di kontri.

Oda Wall Street firms don also revise dia recession forecasts for di wake of Trump tariff announcement. JPMorgan now dey see 60% chance of a US and global economic downturn.

One significant slowdown for di US economy go get major repercussions for Asian exports as US na important market for goods from di region.

"Asia dey bear di brunt of US tariff hike. While room fit dey for negotiation, new regime of higher tariffs don dey here to stay," Qian Wang, Asia Pacific chief economist for investment firm Vanguard tok.

"Dis no good for global and Asia economy, especially those small open economies, both for di short term and long term."

Kontris from Vietnam to Bangladesh don also become highly-reliant on di US as an export market.

Trump announcement last week bin include 46% tariff on Vietnam and 37% on Bangladesh.

Plenty major US brands dey produce goods for Vietnam, wey include Nike and Lululemon.

Bangladesh dey exports $8.4bn (£6.5bn) of garments every year go US, according to trade body di Bangladesh Garment Manufacturers and Exporters Association.

"Asia go likely feel dis tariff mata more becos dem dey send more exports go US pass go oda markets," Frank Lavin, former undersecretary for international trade for di US Department of Commerce tok.

On Friday, di global stock market turmoil deepen, afta China hit back at tariffs wey Trump bin announced.

All three major US stock indexes fall by more dan 5%, wit S&P 500 dropping almost 6%, e be di worst week for di US stock market since 2020.

For UK, di FTSE 100 drop by almost 5% - dia steepest fall in five years, while exchanges for Germany and France face similar declines.

Ms Lee also tok say di global stock market rout look set to continue: "US futures trading lower point to anoda hard session on Wall Street tonight."

Global stock markets don lost trillions in value since Trump announce sweeping new 10% import taxes on goods from every kontri, wit products from dozens of kontris, including key trading partners like China, di European Union and Vietnam, dey face far higher rates.