Asian markets closed sharply lower at the end of trading on Tuesday, October 14, the opening session of Japanese markets after Monday’s Sports Day holiday. The Nikkei index recorded its worst performance since April. Chinese indices also declined, with most falling by more than 1%, as market fears increased and risk appetite declined after the tariff issue between China and the United States returned to the forefront.
US President Donald Trump’s statements at the end of trading last week caused panic and anxiety in global markets, and risk appetite declined as a result. He announced that his country would impose new tariffs on Chinese imports of 100%, in addition to the tariffs currently paid by China, starting November 1, in response to China announcing new controls on its rare earth metal exports early last week. In the Chinese government’s first response to the US decision, the Chinese Ministry of Commerce announced today that it would impose sanctions on five US-based subsidiaries of South Korean shipbuilder Hanwha Ocean, effective immediately, escalating tensions between Washington and Beijing.
On the other hand, Japanese stocks were affected after reaching record highs last week following Sanae Takaichi’s victory as leader of the ruling Liberal Democratic Party. The coalition partner, Komeito, withdrew its support for Takaichi, collapsing the 26-year-old alliance and potentially opening the door to the possibility of an opposition party winning the prime ministership.
The Nikkei index closed at 46,847 points, down 2.58%, or 1,241 points, marking its largest decline since April 11. The Topix index of the Tokyo Stock Exchange fell by approximately 1.99% today, closing at 3,133 points. Furukawa Electric led the Nikkei’s losses, falling more than 7%. Chinese indices recorded declines today, with the broader Chinese CSI300 index falling by approximately 1.20% to close at 4,539 points, while the Shanghai Composite Index closed down 0.62% at 3,865 points.
The Hang Seng Index, the main index of the Hong Kong Stock Exchange, fell by approximately 1.80% to close at 25,422 points, with Kuaishou Technology leading the declines with losses of more than 7%.
Conversely, the South Korean Kospi index fell by approximately 0.63% in today’s session, closing at 3,561 points, as Hanwha shares fell by more than 8% after the announcement of the Chinese sanctions.
India’s Sensex index fell by approximately 0.66% before closing at 81,784 points, while the Nifty 50 index fell by approximately 0.58% to trade at 25,081 points. Meanwhile, LG Electronics India’s market capitalization surpassed that of its parent company after shares in the subsidiary surged more than 45% on Tuesday, giving the Indian unit a market capitalization of 1.14 trillion rupees ($12.83 billion). Its initial public offering (IPO) saw the strongest demand for an Indian IPO since 2008.
New Zealand stock markets closed with gains today, with the NZX 50 index falling 0.56% to close at 13,276 points, while Australia’s ASX 200 index rose 0.19% to close at 8,889 points. Singapore’s main index declined 0.95% in pre-market trading.
Singapore’s economy recorded 2.9% year-on-year GDP growth in the third quarter ending September, while the central bank warned of slower growth next year.