Asian and Gulf financial markets continued their decline on Monday, with some experiencing the largest drops since 2008, impacted by the tariffs imposed by U.S. President Donald Trump earlier this week.
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According to data tracked by Anadolu Agency until 7:29 AM (GMT), global concerns about the sharp downturn were rising, leading to fears of a recurrence of the "Black Monday" in 1987, when global financial markets crashed.
Hong Kong's stock market dropped by 12% at the start of Monday's trading session, marking its worst performance since 2008.
The MSCI Asia Pacific Index also saw a sharp decline, dropping 7.9%, the biggest drop since 2008.
In the UAE stock markets, the Dubai index fell by 5.01%, and the Abu Dhabi index by 2.74%.
The Saudi stock market also continued its downward trend, falling by 2%, while the Kuwaiti index dropped by 2.67%, and the Qatari index by over 1%.
The U.S. stock markets also suffered massive losses worth billions of dollars by the end of the week, leading CNBC to refer to it as "a bloodletting" due to the economic impact caused by Trump's tariff announcement on Wednesday.
After the global market crisis, Trump commented that he had not aimed to cause "a stock market sell-off."
On Wednesday, Trump announced tariffs on all countries, including allies and adversaries, with a minimum of 10%. He described it as "a long-awaited day of liberation," claiming that it would eventually lead to more local production, stronger competition, and lower prices for consumers.
The tariffs included 34% on China (up from 20% previously imposed after Trump took office), 20% on the European Union, 46% on Vietnam, 24% on Japan, 26% on India, 30% on South Africa, 37% on Bangladesh, 17% on Israel, 39% on Iraq, and 30% on Algeria, alongside a 10% tariff on some other countries.
Axios reported that since World War II, the global economy has faced two major shocks: the 2008-2009 financial crisis and the 2020 COVID-19 pandemic. It noted that if Trump's tariffs persist and provoke reactions, they could lead to the third major economic shock in 17 years.
