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Asian Markets Rebound as Tariff Threats Fuel Global Uncertainty

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Asian markets experienced a positive start on Tuesday, with Japan's Nikkei 225 share benchmark rising significantly after a substantial decline the previous day. This rebound followed a volatile session on Wall Street, where U.S. stocks reacted strongly to President Trump's threat to increase tariffs.

The Nikkei 225 saw a considerable jump shortly after the Tokyo market opened. South Korea's Kospi also showed gains, along with markets in New Zealand and Australia. However, the previous day had seen significant drops across Asian markets, with Hong Kong experiencing its worst day since the Asian financial crisis.

On Monday, the S&P 500 closed slightly down as financial markets closely monitored President Trump's actions in the ongoing trade war. The Dow Jones Industrial Average also fell, while the Nasdaq composite saw a modest increase.

The Dow initially plunged sharply, experiencing substantial losses before a sudden surge later in the morning. The S&P 500 also saw a dramatic shift, moving from a significant loss to a substantial gain. This sudden change was triggered by a false rumor regarding a potential pause on tariffs, which was quickly refuted.

Following the rumor, stocks reversed course as President Trump indicated he might raise tariffs further against China. His tariffs are seen as a challenge to the globalization that has reshaped the global economy. He has cited various reasons for the tariffs, including the goal of bringing manufacturing jobs back to the United States.

Despite the tariff threats, indexes continued to fluctuate throughout Monday, reflecting investors' hopes that negotiations might prevent the implementation of the duties. The financial markets worldwide faced significant losses for a third consecutive day.

Additionally, the price of benchmark U.S. crude oil fell below a certain level, influenced by concerns about a global economy weakened by trade barriers. Bitcoin also experienced a decline, dropping below a previous level after showing more stability compared to other markets in the preceding week.

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May 21, 2023 | 05:09