Asian Stocks Slide Amid Recession Fears
By Ayushman Ojha
Published: March 10, 2025
Asian stocks experienced a downturn on Tuesday, mirroring Wall Street's overnight sell-off. This decline was primarily driven by concerns over a potential recession in the United States, exacerbated by President Donald Trump’s trade policies.
Major U.S. stock indexes, particularly the tech-heavy NASDAQ Composite, saw significant losses on Monday, falling by 4%.
Key Factors Influencing the Market
- US Recession Fears: Triggered by trade policies
- Reuters Poll: Increasing economic risks for Mexico, Canada, and the U.S.
- Inflation Concerns: Rising inflation in the U.S. may delay Federal Reserve policy adjustments.
Market Performance Across Asia
Here's a snapshot of how different Asian markets fared:
| Index | Change | Key Stocks |
|---|---|---|
| Nikkei 225 (Japan) | -1.4% | SoftBank Group (-4%), Tokyo Electron (-2.2%), Panasonic (-4.1%) |
| KOSPI (South Korea) | -1.2% | Samsung Electronics (-0.5%), SK Hynix Inc (-2.2%) |
| Shanghai Composite (China) | -0.7% | |
| Hang Seng (Hong Kong) | -1% | Alibaba (-1.3%) |
| S&P/ASX 200 (Australia) | -0.8% | |
| PSEi Composite (Philippines) | -2% | |
| Straits Times Index (Singapore) | -1.7% |
Economic Data and Central Bank Actions
- Japan's Q4 GDP: Revised down to 2.2% annualized due to weaker consumption.
- Bank of Japan: Expected to proceed with interest rate hikes.
- Australia Consumer Sentiment: Surged to a three-year high in March, driven by interest rate cuts and easing inflation.