Asian stock markets tumbled on Tuesday, mirroring losses on Wall Street as concerns over US tariff policies and recession risks rattled investor sentiment.
Japan’s Nikkei 225 led the regional decline, while South Korea, Hong Kong, and Taiwan also saw notable drops.
Meanwhile, investors sought safety in US Treasury bonds, pushing yields lower, while the Japanese yen hit a near five-month high.
Japan’s Nikkei 225 fell 1.7%, recovering slightly from steeper early-session losses, while the Topix index slid 1.95%.
Heavy losses came from Konica Minolta, down 7.07%, and Furukawa Electric, which shed 6.51%.
Adding to market jitters, revised GDP data showed Japan’s economy grew at an annualized rate of 2.2% in Q4—lower than the previous estimate of 2.8%—complicating the Bank of Japan’s monetary policy outlook.
South Korea’s Kospi slipped 1.26%, with the Kosdaq down 1.11%.
Hong Kong’s Hang Seng Index dropped 0.99%, while China’s CSI 300 dipped 0.54%.
Taiwan’s Taiex index slid 1.84%, recovering slightly after an over 3% intraday plunge.
Australia’s ASX 200 lost 0.79%, reversing gains from the previous session. In India, the Nifty 50 opened 0.41% lower, while the BSE Sensex shed 0.50%.
Japanese yen rallies to near 5-month high
The Japanese yen strengthened to a near five-month high against the US dollar, trading at 146.59 per dollar, as global risk aversion pushed investors toward safe-haven currencies.
Other major currency moves remained muted, with the Australian dollar down 0.08% at $0.6282, while the offshore Chinese yuan edged up 0.08% to 7.2564 per dollar.
China’s Xpeng shares rebound as flying car ambitions take flight
Despite the broader market selloff, Xpeng’s shares surged as much as 7.9%, reversing losses from the prior session.
The electric vehicle maker’s stock gained traction after reports that its chairman unveiled plans to start mass production of flying cars and industrial robots by 2026.
However, Xpeng’s shares later pared some of these gains.
TSMC slides despite strong revenue growth
Shares of Taiwan Semiconductor Manufacturing Company (TSMC) slumped over 3% despite the chipmaker reporting a 39.2% year-on-year revenue jump for the first two months of 2025.
TSMC, a key supplier to Nvidia, posted total revenue of 553.3 billion New Taiwan dollars ($16.85 billion), signaling robust demand for AI chips.
US Treasury yields slide as investors seek safety
Investor concerns over a potential US recession fueled demand for safe-haven assets, pushing US Treasury yields lower.
The benchmark 10-year yield dropped to 4.162% before edging up to 4.1865% by midday in Singapore.
Meanwhile, the 2-year Treasury yield briefly hit 3.829% before stabilizing around 3.875%.
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