Volkswacht Bodensee - Japan leads hefty global stock market losses on tariff fears

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.

Adding to fears, Trump said Sunday that tariffs would include "all countries", not just those with the largest trade imbalances with the United States.

"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.

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, Volkswagen and Stellantis, which owns several brands including Jeep, Peugeot and Fiat, all dropped around 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 $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.

Data released Friday that showed the Federal Reserve's preferred gauge of inflation rose more than expected last month, which further dented hopes for interest rate cuts, was also still weighing on sentiment.

"There has been a growing expectation that inflation would fall back sharply this year... instead, many are concerned that tariffs are already having an inflationary impact," said Trade Nation analyst David Morrison.

In company news, shares in CK Hutchison shed 3.1 percent in Hong Kong following reports billionaire Li Ka-shing might delay signing a multi-billion-dollar deal to offload ports operations, including those in the Panama Canal.

His firm has faced criticism from China since it agreed to offload the business to a US-led consortium after pressure from Trump.

Beijing confirmed on Friday antitrust regulators will review the deal, likely preventing the parties from signing it as planned on Wednesday.

Shares in Zensho Holdings, which owns several Japanese restaurant franchises, plunged 3.9 percent in Tokyo after its beef bowl chain Sukiya said it would temporarily shut nearly all of its roughly 2,000 branches after a rat was found in a miso soup and a bug in another meal.

- Key figures around 1430 GMT -

Tokyo - Nikkei 225: DOWN 4.1 percent at 35,617.56 points (close)

New York - Dow: DOWN 0.8 percent at 41,268.01

New York - S&P 500: DOWN 1.1 percent at 5,520.94

New York - Nasdaq Composite: DOWN 1.7 percent at 17,036.19

London - FTSE 100: DOWN 1.2 percent at 8,551.55

Paris - CAC 40: DOWN 1.5 percent at 7,795.64

Frankfurt - DAX: DOWN 1.5 percent at 22,116.74

Hong Kong - Hang Seng Index: DOWN 1.3 percent at 23,119.58 (close)

Shanghai - Composite: DOWN 0.5 percent at 3,335.75 (close)

Euro/dollar: DOWN at $1.0818 from $1.0838 on Friday

Pound/dollar: DOWN at $1.2937 from $1.2947

Dollar/yen: DOWN at 149.52 yen from 149.72 yen

Euro/pound: DOWN at 83.63 pence from 83.68 pence

West Texas Intermediate: UP 0.7 percent at $69.83 per barrel

Brent North Sea Crude: UP 0.6 percent at $73.19 per barrel

burs-rl/rlp

G.Schmid--VB