Asian Stock Markets Tumble Amid US Tariff Shock: A Comparative Look at Indian Indices

Global Markets in Panic Mode

Asian stock markets witnessed a bloodbath on Monday, following US President Donald Trump’s announcement of a fresh round of tariffs, reigniting fears of a global trade war. The immediate market reaction was swift and brutal, with indices across East Asia and the Asia-Pacific region registering sharp declines.

• Japan’s Nikkei 225 led the downturn, plummeting by 5.79%

• Hong Kong’s Hang Seng Index crashed by around 10%

• Taiwan Weighted Index sank 9.61% in early trading

• South Korea’s KOSPI fell 4.14%

• China’s Shanghai Composite dropped 6.5%

• Australia’s S&P/ASX 200 registered a decline of 3.82%

These losses point to a widespread investor exodus from equities across the region, particularly from export-reliant economies that are expected to bear the brunt of retaliatory tariffs.

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Ripple Effect Hits US Futures

Even before the opening bell on Wall Street, the panic had seeped into American markets. Dow Jones Futures dropped by 2.22%, suggesting a bearish opening in the US, further compounding fears of a protracted downturn.

President Trump responded, stating:

"I don't want anything to go down. But, sometimes, you have to take medicines to fix up things."

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The Indian Stock Market: Not Immune to Global Shocks

While the major carnage was seen in East Asia, the Indian equity markets also showed vulnerability. The Sensex ended last week nearly 2,100 points lower, largely driven by global sentiment and the looming uncertainty around the Trump tariffs.

According to Vinod Nair, Head of Research at Geojit Financial Services:

“Investors are closely watching possible countermeasures from global trade partners, which could deepen the geopolitical and economic fog.”

This nervousness has triggered a shift toward safe-haven assets like gold and bonds, indicating a classic "risk-off" mood in global finance.

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GIFT Nifty Futures Signal Weak Start

Indian investors should brace for continued volatility as GIFT Nifty Futures also pointed toward a negative start, indicating sustained pressure on domestic equities in the days ahead.

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Comparing Global and Indian Markets

Region/Country	Index Name	% Decline
Japan	Nikkei 225	5.79%
Hong Kong	Hang Seng	~10%
Taiwan	Taiwan Weighted	9.61%
South Korea	KOSPI	4.14%
China	Shanghai Composite	6.5%
Australia	S&P/ASX 200	3.82%
United States (Futures)	Dow Jones Futures	2.22%
India	Sensex (Weekly Loss)	2,100 pts

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Final Takeaway

While India remains relatively better positioned in terms of economic fundamentals, its capital markets are not insulated from global shocks. Tariff wars and rising trade tensions could exert continued pressure, making it crucial for investors to stay vigilant.

As the global economic chessboard shifts, India’s response — in terms of policy and investor sentiment — will determine how resilient our markets remain in the storm.