The Latest: Asia and European shares sink as US tariffs take effect

Asian and European shares slid on Wednesday with Japan s Nikkei dipping more than as the latest set of U S tariffs including a massive levy on Chinese imports took effect The Nikkei lost to In Hong Kong the Hang Seng lost to while the Shanghai Composite index reversed early losses gaining to Taiwan led losses in Asia as its Taiex plunged China declared it will take resolute measures to defend its trading rights but gave no details on how it will respond to U S moves Germany s DAX lost to In Paris the CAC declined to Britain s FTSE gave up to The future for the S P lost while that for the Dow Jones Industrial Average was down On Tuesday the S P dropped after wiping out an early gain of That took it nearly below its record set in February The Dow Jones Industrial Average dropped while the Nasdaq composite lost Uncertainty is still high about what President Donald Trump will do with his business war The sharply higher tariffs kicked in as of midnight Eastern time in the U S More swings up and down for financial markets are excepted given the uncertainty over how long Trump will keep the stiff tariffs on imports which will raise prices for U S shoppers and slow the financial sector If they last a long time economists and investors expect them to cause a recession If Trump lowers them through negotiations relatively promptly the worst-case scenario might be avoided Here s the latest During Vietnam visit Spanish PM says all will lose from business war On a visit to Hanoi Spanish Prime Minister Pedro S nchez is strengthening commercial ties with Vietnam amid the global economic turmoil caused by the United States sweeping tariffs The U S has slapped Spain as a European Union member with a blanket tariff that rises to for cars steel and aluminum Vietnam fared even worse and faces a crippling duty S nchez making a first ever visit by a Spanish president to the southeast Asian country declared that Spain and Vietnam are advancing toward a strategic integral relationship and revealed a credit line of million euros for Spanish companies to invest in Vietnam especially in delivery infrastructure vitality and water tools S nchez disclosed that both countries were committed to the multilateral business status quo that is being shaken by Donald Trump s tariffs We are firm believers in free arrangement to achieve advance and prosperity S nchez revealed after meeting with Vietnamese Prime Minister Pham Minh Chinh A pact war favors no one We all will lose Spain s leadership wants to offer cheap credit for domestic companies whose export business to the U S could be harmed by Trump s tariffs Spain s economic activity minister noted Tuesday that of Spain s total of -billion euros worth of exports to the U S could be impacted After his stops in Hanoi and Ho Chi Minh City S nchez will visit China on Friday seeking closer economic and diplomatic ties with Trump s No tariff target European shares slide Germany s DAX lost to In Paris the CAC declined to Britain s FTSE gave up to The future for the S P lost while that for the Dow Jones Industrial Average was down China says it will take resolute measures to defend its trading rights China declared it will take resolute measures to defend its trading rights but gave no details on how it will respond to U S moves that have pushed tariffs on Chinese goods to an unprecedented Foreign Ministry spokesperson Lin Jiang revealed at a daily briefing Wednesday that China would by no means accept the U S tariff hikes and extreme pressure exerted on China Lin repeated China s assertion that it would fight to the end against what it has described as pact bullying by the U S but did not say whether it would add to the tariffs earlier reported on U S imports or apply other means And Lin repeated Beijing s belief that the U S must first demonstrate sincerity for talks India s Central Bank cuts key repo rate by basis point India s Central Bank cut its key repo rate by basis points on Wednesday in a move to aid the sluggish financial sector that faces heat from the U S reciprocal tariffs which are set to dampen New Delhi s aspirations for an export-led recovery That is the interest rate at which the institution lends money to commercial banks when there is a need for short-term necessities The Monetary Agenda Committee of the Reserve Bank of India unanimously voted to lower the repo rate to for the second consecutive time this year and changed its monetary guidelines stand from neutral to accommodative Governor Sanjay Malhotra noted in a comment the latest tariffs have exacerbated uncertainties clouding the economic outlook across regions posing new headwinds for global advancement and inflation India continues to make steady progress though towards its goals of price stability economic development and inflation but the Bank remains vigilant to the realizable risks from global uncertainties disclosed Malhotra Bank of Japan calls meeting on global financial system and markets Top bureaucrats from the Bank of Japan the Finance Ministry and the Financial Services Agency met Wednesday to discuss the nation s response to what they reported were the fresh shifts in the global financial market and markets The unexpectedly called meeting was deduced to be over Trump s contemporary tariffs which have set off gyrations in global financial markets including the Tokyo Stock Exchange Trump was not mentioned in the announcement about the meeting Attending the meeting were Koji Nakamura and Seiichi Shimizu directors at the Bank of Japan and two agents each from the ministry and the agency Asia markets close down Japan s Nikkei lost to In Hong Kong the Hang Seng lost to while the Shanghai Composite index reversed early losses gaining to Taiwan led losses in Asia as its Taiex plunged Big tech manufacturers were among the biggest decliners Computer chip giant TSMC Corp dropped while iPhone maker Hon Hai Precision Industry plunged South Korea s Kospi lost to and the regime reported it would provide help for its beleaguered automakers The S P ASX in Australia declined to Shares in New Zealand also fell In India the Sensex declined as the central bank cut its benchmark interest rate while Bangkok s SET shed Asia markets slide after tariffs go into effect Japan s Nikkei dipped more than and other Asian shares also sank Wednesday as the latest set of U S tariffs including a massive levy on Chinese imports took effect Markets have been wobbly for days with investors flummoxed over what to make of President Donald Trump s transaction war On Tuesday the S P dropped after wiping out an early gain of That took it nearly below its record set in February The Dow Jones Industrial Average dropped while the Nasdaq composite lost Stocks had rallied globally on Tuesday with indexes up in Tokyo in Paris and in Shanghai Any optimism or buying enthusiasm appeared to have dissipated by the time the sharply higher tariffs became reality The Nikkei was down at as of mid-afternoon Tokyo time In Hong Kong the Hang Seng lost to while the Shanghai Composite index edged just points lower to South Korea s Kospi lost to while the S P ASX in Australia declined to Shares in New Zealand also fell Bangladesh manufacturers worried about losing sphere share in US Garment manufacturers and exporters in Bangladesh the world s second largest after China are worried about losing its share in the apparel sector of the United States which is imposing new tariffs of The U S is Bangladesh s largest region as a single destination where the country s nearly billion industry exported apparel goods worth billion in Now Bangladesh s manufacturers say their U S buyers are halting orders which could help competitors like India and Pakistan overtake Bangladesh in the U S territory Bangladesh has already sought postponement of the application of the new tariff for three months to help the country assess the situation and smoothly implement its initiatives Asif Ashraf managing director of Urmi Group says they are worried about the U S domain because it will change the global equilibrium The sector employed about million workers mostly women from rural areas and the industry accounts for about of the country s total annual exports South Korea launches urgency funding undertaking for automobile industry South Korea has launched an urgency funding initiative worth trillion won billion to help its automobile industry cope with the impact of increased tariffs imposed by the Trump administration The administration package disclosed on Wednesday includes expanded low-cost financing from state-run lenders as well as a new financing project backed by auto giants Hyundai and Kia along with financial institutions aimed at supporting struggling carmakers and auto parts manufacturers The regime will also expand subsidies for electric wagon purchases Cars and auto parts stand as South Korea s top export items to the United States according to the Ministry of Business Industry and Ability which raised concerns that the Trump administration s imposition of a tariff on these products will have a considerable shock on the industry The ministry says South Korea s exports of automobiles to the United States totaled billion last year while exports of auto parts amounted to billion Trump s new tariffs go into effect including a combined levy on China President Donald Trump s sweeping new tariffs went into full effect just after midnight Wednesday When Trump informed the latest round of tariffs on April he declared that the U S would now tax nearly all of America s trading partners at a minimum of and impose steeper rates for countries that he says run pact surpluses with the U S The baseline already went into effect Saturday Trump s higher import tax rates on dozens of countries and territories took hold at midnight The steeper levies run as high as with that biggest rate landing on small economies that commerce little with the U S including the African kingdom of Lesotho A few other rates include a tax of on imports from Madagascar on Vietnam on Taiwan on South Korea on Japan and on the European Union A few of these new tariffs build on previous exchange measures Trump last week publicized a tariff of on China for example which would come on top of levies he imposed on the country earlier this year Trump has since threatened to add an another levy on Chinese goods in response to Beijing s in the last few days promised retaliation That would bring the combined total to against China Source