New Delhi: Asian markets saw a recovery on Tuesday as Japan’s main stock index, Nikkei 225, rose by 5.5%. This comes after Monday’s rout, when it fell nearly 8%. Global markets, including India’s, witnessed a severe “Monday blue” amid US President Donald Trump announcing tariffs on countries around the globe.

South Korea’s Kospi index rose by 2%. Markets in Australia and New Zealand also opened strong. This rise comes after a rough Monday, when Asian markets crashed, with Hong Kong’s stocks plunging 13.2% — the worst since the 1997 Asian financial crisis.

$9.5 Trillion In Equity Value Wiped Out

The Nasdaq 100 entered a bear market, as over $5 trillion was wiped off in just two days. The reason — Trump’s decision to impose tariffs on other countries, with baseline duties of 10% on all US imports.

Rumours Trigger Stock Surge – Then Fall Again

All three major US indexes opened Monday deep in the red. The Dow plunged by as much as 1,700 points early on, but managed a rebound, surging nearly 900 points later in the morning. The S&P 500 also saw a stunning turnaround — swinging from a steep 4.7% loss to a 3.4% gain, coming close to setting a record for one of its sharpest intraday recoveries.

This sudden rally happened due to a false rumour that Trump would pause tariffs for 90 days. However, the White House quickly called it ‘fake news.’

Reuters had cited a CNBC report earlier, which quoted White House Economic Council Director Kevin Hassett saying that the US President was considering a three-month pause in the implementation of his tariffs on all countries except China.

Markets soon dropped again, especially after Trump said he might increase tariffs on China, in response to Beijing’s own tariffs on US goods.

Impact on Indian Markets

On April 7, both Sensex and Nifty saw their biggest single-day fall in 10 months due to fears that Trump’s trade policies might push the US economy into a recession and increase inflation.

Sensex crashed by 2,226.79 points (2.95%) to close at 73,137.90. During the day, it had fallen by as much as 3,939.68 points (5.22%), reaching 71,425.01.

Nifty dropped by 742.85 points (3.24%), closing at 22,161.60. At one point, it was down 1,160.8 points (5.06%), touching 21,743.65.