Asian Markets Tumble as Trade Tensions Rise and Ukraine Conflict Escalates

Global Stock Markets

Key Points

  • Asian markets dropped sharply due to escalating U.S.-China trade tensions and the ongoing conflict in Ukraine.
  • The Hang Seng fell 1.53%, the Nikkei 1.33%, and the Kospi 0.22%, reflecting regional uncertainty.
  • Oil prices surged as OPEC+ announced a small production hike starting in July.
  • Wall Street ended May strong, but Big Tech stocks, especially Nvidia, weighed down Friday’s performance.

Asian stocks sank on Monday amid rising geopolitical tensions and renewed trade disputes between the U.S. and China. The Hang Seng Index in Hong Kong dropped 1.53% to 22,932.29 following a sharp exchange of accusations between Beijing and Washington over violations of a recent tariff agreement. U.S. President Donald Trump’s decision to double tariffs on steel and aluminum to 50% added to investor anxiety.

China’s factory activity shrank in May, although the pace of decline slowed, offering little reassurance. Markets in mainland China remained closed for a public holiday, which limited market liquidity and amplified regional uncertainty.

Oil prices surged after OPEC+ agreed to a modest production increase, effective from July. U.S. benchmark crude rose $1.60 to $62.39 per barrel, while Brent crude climbed $1.41 to $64.19 per barrel.

On the geopolitical front, Russia launched fresh missile and drone attacks on Ukraine hours before peace talks were set to begin in Istanbul. In response, Ukraine reportedly destroyed over 40 Russian aircraft in a drone strike deep within Russian territory, according to Ukraine’s Security Service.

Other Asian indexes also recorded losses. Tokyo’s Nikkei 225 fell 1.33% to 37,459.29, South Korea’s Kospi slipped 0.22% to 2,691.81, and Australia’s S&P/ASX 200 edged down 0.28% to 8,411.30.

In the U.S., Wall Street had just ended its best month since 2023, with the S&P 500 closing at 5,911.69, up for May but down slightly on Friday. Big Tech dragged the index, with Nvidia falling 2.9% despite a strong quarterly report. Gap Inc. tumbled 20.2% due to concerns that tariffs could add $300 million to its annual costs.

Meanwhile, Ulta Beauty surged 11.8% after strong earnings and raised guidance. Costco gained 3.1% on better-than-expected results.
Treasury yields eased as inflation data came in slightly below expectations. Consumer sentiment also improved, according to the University of Michigan, buoyed by Trump’s recent pause on some tariffs.

In early Monday trading, the U.S. dollar weakened to 143.55 yen, while the euro rose slightly to $1.1364.

EDITORIAL TEAM
EDITORIAL TEAM
TechGolly editorial team led by Al Mahmud Al Mamun. He worked as an Editor-in-Chief at a world-leading professional research Magazine. Rasel Hossain and Enamul Kabir are supporting as Managing Editor. Our team is intercorporate with technologists, researchers, and technology writers. We have substantial knowledge and background in Information Technology (IT), Artificial Intelligence (AI), and Embedded Technology.

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