World World People work on the floor at the New York Stock Exchange, Mar 31, 2025. (Photo: AP/Seth Wenig) Tokyo plunged more than four percent, leading losses across global stock markets as uncertainty over President Donald Trump's latest tariff announcements due on his "Liberation Day" on Wednesday eroded sentiment. "There is an air of capitulation in financial markets ahead of the April 2nd reciprocal tariff announcement from the US," said Kathleen Brooks, research director at XTB. The S&P 500 fell into correction territory, a drop of at least 10 percent from a recent peak. The S&P 500 set a record high just last month as investors still viewed Trump tariff threats as a negotiating tactic. But as it has become clear Trump intends to go through with imposing massive tariffs on major US trading partners, concerns about their inflationary impact and the possibility they may trigger a recession have mounted. Adding to fears, Trump said Sunday that tariffs would apply to "all countries", not just those with the largest trade imbalances with the United States. His administration has still not released a detailed plan about who or what will be impacted, however, leading to uncertainty that led to a spike Monday in the CBOE Volatility Index, colloquially known as Wall Street's "fear gauge". "Trump continues to be the key reason why markets are having a bad day," said AJ Bell investment director Russ Mould. "He has now threatened to target all countries importing goods into the US with tariffs, further clouding economic prospects around the world," he added. Wall Street's blue-chip Dow stock index bucked the trend, however, managing a small gain in midday trading in New York. Automakers were hit particularly hard in the wake of Trump's announcement that he would also impose 25 percent duties on imports of all vehicles and parts. In Europe, Porsche and Volkswagen both fell more than three percent. Toyota, the world's biggest carmaker, plunged over three percent, along with Nissan and Mazda.  "Within the Asia-Pacific region, the car levies will hit Japan and South Korea the hardest," Moody's Analytics economists wrote. "Such a sizeable tariff hike will undermine confidence, hit production and reduce orders. Given the long and complex supply chains in car manufacturing, the impact will ripple through these countries' economies." Gold, seen as a safe haven asset in times of uncertainty, hit a record high over US$3,100 an ounce. Yields fell on government bonds, including those of the United States, "reflecting ongoing safe-haven trading due to concerns about US trade policy," said Briefing.com analyst Patrick O'Hare. In company news, shares in drug maker Moderna share price tumbled more than 10 percent as traders digested news that a top US Food and Drug Administration official had quit over disagreements with Trump's new health secretary, noted vaccine sceptic Robert F Kennedy Jr. Among individual companies, US aviation giant United Airlines fell more than four percent amid news that Canadians were pulling back on trips to the United States due to the tariffs. In Asia, shares in CK Hutchison shed 3.1 percent in Hong Kong as a Chinese review of a multi-billion dollar deal to offload ports operations, including those in the Panama Canal, appeared likely to lead to a delay of its Wednesday signature. Get our pick of top stories and thought-provoking articles in your inbox Stay updated with notifications for breaking news and our best stories Get WhatsApp alerts Join our channel for the top reads for the day on your preferred chat app Copyright© Mediacorp 2025. Mediacorp Pte Ltd. All rights reserved. We know it's a hassle to switch browsers but we want your experience with CNA to be fast, secure and the best it can possibly be. To continue, upgrade to a supported browser or, for the finest experience, download the mobile app. Upgraded but still having issues? Contact us