SINGAPORE (Reuters) -Stocks dived and investors scrambled to the safety of bonds, gold and the yen on Thursday as U.S. President Donald Trump unveiled a bigger-than-expected wall of tariffs around the world’s largest economy, upending trade and supply chains.

The high-flying tech sector was pummelled as manufacturing hubs in China and Taiwan faced new tariffs above 30%, bringing the total new levy to an eye-watering 54% on imports from China.

"The U.S. effective tariff rate on all imports look to be the highest level in over a century," said Citi’s global rates trading strategist, Ben Wiltshire.

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 (NASDAQ:AAPL), 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%.[.N]

Gold hit a record high above $3,160 an ounce, and oil, a proxy for global growth, slumped more than 3% to put benchmark Brent futures at $72.56 a barrel. [GOL/][O/R]

In early trade in Tokyo, the Nikkei was down 3.9% at an eight-month low, with nearly every index member falling as shippers, banks, insurers and exporters copped a beating.

Benchmark 10-year Treasury yields shot down 14 basis points to a five-month low of 4.04% as investors braced for slower U.S. growth, while interest rate futures priced in a higher chance of interest rate cuts in the months ahead.

"The tariffs are so comprehensive and so much larger than we expected," said Jeanette Gerratty, chief economist at wealth advisory Robertson Stephens in the U.S. tech heartland of Menlo Park, California.

"People were talking earlier about whether clarity would boost the market. But now you have clarity, and no one likes what they see."

RISK TO GLOBAL TRADE

Trump announced a baseline 10% tariff on imports with far higher levies on some trading partners, particularly in Asia.

Besides China’s 34% tax, Japan got a 24% tariff, Vietnam 46% and South Korea 25%. The European Union was hit with a 20% levy.

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. Ten-year Japanese government bond futures made their sharpest jump in eight months.

"The tariffs announced today lead to significant risk to global trade," said Zhiwei Zhang, chief economist at Pinpoint Asset Management in Hong Kong.

"Supply chains in East Asia face pressure in particular."

The U.S. dollar was higher against Asian currencies in rollercoaster currency trade, except against the safe-haven yen which rose to the strong side of 148 yen per dollar..

Trump also shut a loophole used to ship low-value packages from China, which is likely to hurt China’s giant online retailers.

Trading partners are expected to respond with countermeasures of their own that could lead to dramatically higher prices.

"The tariff rates unveiled this morning far exceed baseline expectations, and if they aren’t negotiated down promptly, expectations for a recession in the U.S. will rise dramatically," IG market analyst Tony Sycamore said.

Gold prices rushed to a record high in early Asian trading on Thursday, benefiting from heightened safe haven demand after U.S. President Donald Trump imposed sweeping trade tariffs.

Trump’s tariffs, which will include universal tariffs and specific duties against at least 18 countries, stand to potentially upend global trade and also run the risk of denting U.S. and global economic growth. 

This sparked a severe risk-off move in broader financial markets, pushing traders into safe havens such as gold and the Japanese yen. Gold also benefited from a decline in the dollar, although broader metal prices all retreated. 

Spot gold hit a record high of $3,165.64 an ounce, while gold futures expiring in June hit a peak of $3,198.40/oz.

Trump imposes sweeping universal, reciprocal tariffs 

Trump on Wednesday evening announced a 10% duty on all U.S. imports, and additional, reciprocal tariffs against major economies which will be equivalent to half of their duties on American goods.

China was by far the worst hit by this move, with total tariffs on the country, since Trump’s inauguration, now coming up to 54%. 

The European Union will see 20% tariffs, while Vietnam, Taiwan, Japan, and India were slapped with tariffs between 24% and 46%. 

Countries with lower duties on U.S. imports were subject to lower tariffs. These include Brazil, Chile, Australia, the UK, and Colombia- all of which will be subject to 10% tariffs. 

The baseline tariffs will take effect from April 5, while Trump’s reciprocal tariffs will begin on April 9.

March saw the largest net selling of global stocks by hedge funds in the past 12 years, according to a note published by Goldman Sachs’ Prime Desk.

Heavy selling of risk assets was observed for four consecutive sessions at the end of the month and in 15 of the 21 sessions throughout the month, the report added.

Single stocks accounted for 94% of the selling, marking the largest monthly notional net selling on record.

Global equity markets have been on a downward trend, while the safe-haven XAU/USD reached a new record high this week. The S&P 500 is down 4.2% year-to-date.

Investors have increasing concerns over a potential global trade war leading to a recession, following U.S. President Donald Trump’s plan for tariffs that would essentially apply to all countries.

The President has termed Wednesday as "liberation day," as he prepares to announce his latest round of tariffs at the White House in the afternoon. Since taking office,  Trump has announced and delayed plans to impose tariffs on foreign imports several times.

The uncertainty has caused unease in global stock markets, raised concerns among corporate executives and economists, and led to disputes with the U.S.’s largest trading partners.

"While high tariffs are likely to eventually hurt the US economy more than the rest of the world, global risk-off could still support the US Dollar Index Futures short-term," Bank of America FX strategists wrote in a client note.

As of now, no details regarding Wednesday’s plans have been disclosed. The President is scheduled to speak at 4pm ET, with White House officials stating that the implementation of the most comprehensive rewrite of U.S. trade policy would take effect immediately.

Asian stocks struggled for direction in range-bound trading on Wednesday as investors cautiously awaited key tariff announcements from U.S. President Donald Trump later in the global day.

U.S. stock futures were also muted in early Asia hours. Major U.S. stock indices closed higher on Tuesday with gains in technology shares. 

Trump’s ’Liberation Day’ tariffs approach, markets watchful

Trump is set to impose reciprocal tariffs on a broad range of trading partners, on April 2. This initiative, referred to as "Liberation Day," will be followed by a 25% tariff on auto imports starting April 3.

Trump will unveil the new trade tariffs at 15:00 ET (19:00 GMT), and the measures will be effect immediately after the announcement, White House officials said on Tuesday.

Bessent told lawmakers on Tuesday that President Trump will impose the highest reciprocal tariffs on major trading partners on April 2, leaving the targeted countries to reduce the duties by meeting U.S. demands, according to CNBC.

Market participants worldwide are awaiting specific details about the tariffs.

Given the potential for these tariffs to disrupt global trade dynamics, investors were likely taking a wait-and-see approach, leading to subdued market movement.

Japan’s Nikkei 225 was largely muted on Wednesday, while TOPIX lost 0.6%.

China’s Shanghai Composite edged up 0.2%, while the Shanghai Shenzhen CSI 300 index was largely unchanged. 

Hong Kong’s Hang Seng index gained 0.4%.

Singapore’s Straits Times Index fell 0.4%, while Australia’s S&P/ASX 200 ticked up 0.2%.

Futures for India’s Nifty 50 inched 0.2% higher.

S. Korea shares tick lower amid political instability

South Korea’s KOSPI inched 0.3% lower on Wednesday.

South Korea is facing political turmoil as the country’s Constitutional Court is set to review President Yoon’s impeachment over a controversial martial law order, with a decision on whether to remove or reinstate him expected on April 4.

Political instability often triggers concerns about economic disruption, which can result in cautious trading, capital outflows, and a flight to safer assets.

As South Korea is a major economy in the region, any significant instability could have a ripple effect on neighboring markets, particularly in trade-dependent countries.

U.S. President Donald Trump will impose the highest possible reciprocal tariffs on major trading partners on April 2, and it will fall to the targeted countries to bring down the duties, Treasury Secretary Scott Bessent told lawmakers on Tuesday, according to CNBC. 

Bessent said that Trump’s April 2 tariffs will serve more as a cap, and that the targeted countries can pass measures to meet U.S. demands and bring down the rate, CNBC’s Emily Wilkins reported, citing Congressman Kevin Hern. 

The Trump administration said that the tariffs will be effective immediately, while Trump also recently warned that he will start with universal tariffs.

A report from the Washington Post said Trump was considering imposing duties on roughly 20% of imports coming into the country. 

The U.S. President has repeatedly touted April 2 as “liberation day,” and is set to announce his most sweeping round of tariffs yet on Wednesday. 

Trump is expected to impose tariffs based on the duties levied by other countries on U.S. imports, with any reduction in said duties set to result in lower U.S. tariffs. 

A so-called “dirty 15” countries- which have large trade surpluses with the U.S., will be the most targeted, recent reports showed. China, Japan, India, Canada, Mexico, and Germany, are likely to face higher tariffs. 

Trump’s 25% duties on automobiles are also set to take effect from April 2, while the President could also impose tariffs on other sectors such as select commodities, semiconductors, and pharmaceuticals.

Chicago Federal Reserve President Austan Goolsbee said on Tuesday that “hard” economic data remained strong, but increased trade tariffs under President Donald Trump presented risks of higher inflation and slowing growth. 

Speaking in an interview on Fox News, Goolsbee said that “in theory,” a one time tariff would only cause a transitory increase in inflation. Imports also account for just 11% of the U.S. economy, which will limit the inflationary impact of tariffs. 

But the prospect of major economies retaliating over Trump’s tariffs could cause a “stepping up” in tariffs, which could underpin inflation. 

“The fear is if it jumps out of the 11% line,” Goolsbee said, warning that tariffs could increase the prices of “intermediate goods” and raise the cost of production for other industries.

He also warned that increased tariffs could see “people start freaking out” and change their spending behaviour.

“If the consumer stops spending, or if a business stops investing, because they’re uncertain or afraid where we’re headed, that would be a bit of a mess,” Goolsbee said. 

The Chicago Fed President noted recent data showing consumer and business sentiment “almost cratering,” but said that hard economic indicators remained strong.

Speculation over Trump’s tariffs ramped up this week ahead of his April 2 deadline to impose more tariffs. Trump has repeatedly touted the date as “liberation day,” and is set to unveil reciprocal tariffs on several major trading partners, as well as potential duties on key industries. 

Underlying economy remains strong, Goolsbee says 

Goolsbee said that hard economic indicators- such as inflation and growth- still showed resilience in the U.S. economy. 

“The hard data is still pretty solid… if we could get past this period of uncertainty, I still think that the underlying strength of the hard data in the economy is still there,” Goolsbee said. 

He noted that the labor market remained strong, and that inflation remained on a path to fall further after easing below 3%. 

But he noted that this contrasted heavily with weak consumer and business sentiment. 

The S&P 500 climbed Tuesday after cutting come losses as tech jumped despite cautious sentiment on risk assets ahead of President Donald Trump’s April 2 tariff announcements.

At 4:00 p.m. ET, the Dow Jones Industrial Average fell 11 points, or 0.03%, the S&P 500 index traded up 0.4%, and the NASDAQ Composite rose 0.9%.

The broad-based S&P 500 lost nearly 5% in the first quarter of 2025, the tech-heavy NASDAQ Composite suffered an over 10% quarterly plunge, while the blue chip Dow Jones Industrial Average lost nearly 2% in the first quarter.

Trump reciprocal tariffs to be impose immediately

President Donald Trump is set to impose reciprocal tariffs on a broad range of trading partners on Apr. 2 that will go into effect immediately on Apr. 2, White House press secretary Karoline Leavitt said on Tuesday. 

Revoking diminish exepctions against China -- allows small packages under 100 to come in duty free. 

"My understanding is that the tariff announcement will come tomorrow. They will be effective immediately,” Leavitt said.

Trump is considering a range of measures that could include a blanket tariff as high as 20%, a tired-tariff measure or a customized country by country basis.

Trump is expected to announce the details of the administration’s reciprocal tariffs at 3:00 p.m. ET.

This initiative, referred to as "Liberation Day," will be followed by a 25% tariff on auto imports starting April 3.

These measures are expected to significantly impact global trade dynamics and have raised concerns about their potential to contribute to recession risks. 

U.S. stock futures were subdued on Tuesday, with investors awaiting President Donald Trump’s much-anticipated unveiling of sweeping new tariffs. Treasury Secretary Scott Bessent says the announcement will come on April 2, while the White House releases a list of foreign countries’ regulations that it considers to be trade barriers. Traders will be keeping an eye out for job openings data later today, and tariff-related uncertainty underpins a rise in gold prices to a record high again.

1. Futures muted

U.S. stock futures hovered around the flatline as the world braces for the announcement on new tariffs by President Trump later this week.

By 03:34 ET (07:34 GMT), the Dow futures contract, S&P 500 futures and Nasdaq 100 futures were all mostly unchanged.

The main indices on Wall Street were mixed at the end of trading on Monday, as markets took a deep breath before Trump is expected to unveil the levies on April 2 -- what he has deemed "Liberation Day."

Trump has argued that the tariffs are necessary to correct imbalances between the U.S. and its foreign trade partners, as well as a tool to bring manufacturing jobs back to the country. However, some economists have warned that the duties will refuel inflationary pressures and weigh on growth, leading to a period of so-called "stagflation."

Jitters over the prospect of the tariffs have dented sentiment among investors, who had initially been hopeful that Trump would usher in pro-growth and business-friendly policies, for much of the first quarter. The benchmark S&P 500 index slipping to its worst first three months of a year since 2022.

2. Bessent on Trump tariff announcement timing

Trump will announce his new round of trade tariffs on April 2 at 15:00 ET (19:00 GMT), Treasury Secretary Scott Bessent said in a Fox News interview on Monday.

“I’m not going to get ahead of President Trump, he’s going to announce them at three o’clock, on Wednesday,” Bessent told Fox News’ Sean Hannity.

“We’re going to see fair trade […] everyone will have an opportunity to lower their tariffs, non-tariff barriers […] and make the global trading system fair for American workers again,” Bessent said.

Bessent’s comments echoed Trump’s view that the U.S. is treated unfairly in global trade. Trump plans to impose tariffs matching those imposed by major trading partners on American goods.

Late on Monday, the White House released a detailed list of foreign countries’ rules that it views as trade barriers, including applied tariff rates and regulations on everything from food safety to renewable energy.

3. JOLTS data ahead

Traders are eyeing a slew of indicators due out this week, as well as a speech from Federal Reserve Chair Jerome Powell on the state of the economy.

Markets will have the chance to parse through the February reading of a measure of job openings later today, which will be the first of a string of labor market data that will culminate with the all-important nonfarm payrolls report on Friday.

The Job Openings and Labor Turnover Survey, or JOLTS report, is seen coming in at 7.690 million on the last day of February, compared with 7.740 million in the previous month.

The figures -- which are considered to be a proxy for labor demand -- come as worries are growing that Trump’s tariffs will trigger an economic slowdown. Analysts at Goldman Sachs have lifted their estimate for the odds of a recession to 35%.

4. Chinese factory activity speeds up

Chinese manufacturing activity grew more than expected to a four-month high in March thanks to a sustained rise in new orders, private Purchasing Managers’ Index (PMI) data showed on Tuesday, although the outlook remained clouded over by Trump’s tariff plans.

The Caixin manufacturing PMI grew 51.2 in March, above expectations of 50.6 and the prior month’s reading of 50.8.

A reading above 50 signals expansion, and March’s increase -- the largest since November -- marks the sixth consecutive month of growth.

Stronger demand and new product launches helped boost new business inflows. Foreign demand also picked up, with companies reporting the fastest increase in export orders in nearly a year, the PMI survey stated.

"The majority of surveyed companies expressed confidence in the near-term economic outlook, although some remained cautious over a potential escalation in global trade tensions," Wang Zhe, senior economist at Caixin Insight said in a statement.

5. Gold hits fresh record high

Gold prices notched a new all-time high in Asian trading on Tuesday, boosted by bullion’s safe-haven appeal as market participants prepared for the upcoming tariff announcements from Trump.

Uncertainty surrounding these trade policies has driven investors towards gold, which is traditionally viewed as a safe-haven asset during times of geopolitical and economic instability. The yellow metal has logged consecutive fresh record highs in the last four sessions.

Elsewhere, Bitcoin rose, steadying somewhat after the world’s biggest cryptocurrency slumped by about 11% in the first quarter, with sentiment frail in the face of Trump’s levies.

Meanwhile, oil prices inched higher after Trump threatened to impose secondary tariffs on Russian crude and attack Iran, though worries that trade tariffs could hit global growth capped gains. The benchmarks settled at five-week highs a day earlier.

(Reuters) - Goldman Sachs raised its 12-month price forecast for Europe’s benchmark STOXX 600 stock index, citing the impact of U.S. President Donald Trump’s tariff plans.

The Wall Street brokerage trimmed its forecast to 570 from 580 earlier, it said in a note on Monday.

Chinese manufacturing activity grew more than expected to a four-month high in March due to a sustained rise in new orders, private Purchasing Managers Index (PMI) data showed on Tuesday. 

The Caixin manufacturing PMI grew 51.2 in March, above expectations of 50.6 and the prior month’s reading of 50.8.

A reading above 50 signals expansion, and March’s increase—its largest since November—marks the sixth consecutive month of growth.

The Caixin data comes days after the government PMI, which showed the manufacturing sector grew more than expected in March.

Stronger demand and new product launches helped boost new business inflows. Foreign demand also picked up, with companies reporting the fastest increase in export orders in nearly a year, the PMI survey stated.

"The majority of surveyed companies expressed confidence in the near-term economic outlook, although some remained cautious over a potential escalation in global trade tensions," Wang Zhe, senior economist at Caixin Insight said in a statement.

Beijing rolled out major stimulus measures in 2024, but China’s economy faces additional pressures from U.S. trade policies under President Donald Trump.

Trump has already imposed 20% additional tariffs on Chinese goods in his second term, with more broad tariffs potentially on the horizon.

"The government has made boosting consumption the top priority of its economic work this year. That means policy efforts should focus on stabilizing employment, alleviating households’ financial burdens, and increasing their disposable income," Wang Zhe added.

Last month, China launched a special action plan to stimulate domestic consumption as part of efforts to drive economic growth.