Asian markets faced their worst drop in a month as fears over US tariffs and a deepening trade war hit investor sentiment. Gold surged to a record high as traders sought safe-haven assets.
A regional stock index fell 1.3%, with Taiwan’s market hitting its lowest since September. Japan’s shares declined, partly due to an ex-dividend date. Cryptos also dipped, while US 10-year Treasury yields slipped.
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Investors are bracing for President Trump’s April 2 tariff announcement after he imposed a 25% tax on all imported cars. Barclays’ Kaanhari Singh warned that markets are underestimating the impact.
Traders are reducing risk ahead of key US inflation data on Friday. Long-term Treasury yields climbed, reflecting fears of inflation. In Japan, rising inflation supports gradual rate hikes by the Bank of Japan.
Oil is heading for its third straight weekly gain, while gold hit an all-time high above $3,077 per ounce. Goldman Sachs raised its year-end gold forecast to $3,300.
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