Gold has reached a record high, while the Japanese yen has strengthened against the dollar following President Donald Trump’s announcement of reciprocal tariffs.
The stock markets has slumped according to reports by Reuters following what has been seen as an unexpectedly aggressive tariff announcement by the US leader.
The tech sector was pummelled as manufacturing hubs in China and Taiwan faced new tariffs above 30%, bringing the total new levy to 54% on imports from China.
Citi’s global rates trading strategist, Ben Wiltshire, said, “The US effective tariff rate on all imports looks to be the highest level in over a century.”
Nasdaq futures tumbled 4% and in after-hours trade some $760 billion was wiped from the market value of Magnificent Seven technology leaders.
Apple shares, hit hardest as the company makes iPhones in China, were down nearly 7%.
S&P 500 futures fell 3.3%, FTSE futures fell 1.8%, while European futures fell nearly 2%.
However, Gold hit a record high above $3,160 an ounce, and oil slumped more than 3% to put benchmark Brent futures at $72.56 a barrel.
In Tokyo, Japan, the Nikkei was down 3.9% at an eight-month low.
South Korea’s Kospi fell 2%. Van Eck’s Vietnam ETF fell more than 8% in after-hours trade. Australian shares fell 2%.
Markets in Taiwan were closed for a holiday.
China’s yuan touched a two-month low in offshore trade, ahead of the onshore open.
