Global Markets Slide as Trump's Tariffs Trigger Recession Fears

Global stocks, especially Japanese banks, suffered a steep selloff following U.S. President Trump's tariffs, raising recession fears. Investors flocked to safe-haven assets such as gold and bonds, causing yields to plummet worldwide. Analysts warn of potential recessions and market turmoil if trade tensions persist.

In a dramatic response to U.S. President Donald Trump's sweeping tariffs, global markets, notably in Japan, experienced a significant selloff on Friday. Investors sought refuge in safe-haven assets, such as U.S. Treasury bonds and gold, as fears of a looming global recession intensified.

Japanese government bonds mirrored this trend, experiencing a record drop in yields as market players rushed to secure stability amidst widespread economic concerns. Analysts forecast potential recessions in the coming quarters if the current tariff strategies hold firm.

As stocks took a nosedive, notably with the Nikkei shedding over 4% and banking indexes plummeting by 11%, speculation arose regarding potential delays in rate hikes by the Bank of Japan. Across currencies, the dollar weakened while gold surged, reinforcing its status as a safe-haven asset during turbulent times.

(With inputs from agencies.)