Global Markets Reel Amid Trump's Tariff Turmoil

Global markets faced heavy losses as President Trump's sweeping tariffs led to a selloff in stocks, a rally in U.S. Treasuries, and a surge in gold. The move heightened fears of a recession, causing significant declines in Japanese and U.S. banking stocks, while safe-haven assets gained traction.

Japanese banks suffered significant losses on Friday, contributing to the global stock market selloff triggered by U.S. President Donald Trump's extensive tariffs. These economic measures also fueled a rally in U.S. Treasuries and bolstered gold prices, which neared a record high.

The 10-year U.S. Treasury yields dropped below 4%, with traders predicting more than 100 basis points of Federal Reserve rate cuts this year amid recession fears. In Japan, a surge for government bonds led to a considerable decline in yields as investors sought safety.

Heavy losses were recorded in Asian markets, even with the closures in China, Hong Kong, and Taiwan. The Nikkei saw a massive 9% decline, its worst weekly drop in over five years, as Japanese banks were particularly affected by the tariff shock. This market turmoil has prompted speculation about potential delays in interest rate hikes by the Bank of Japan.

(With inputs from agencies.)