Trump releases negative news before Asian markets open, Asia-Pacific stock markets collectively decline

(Source: Caixin)

European major stock indices all opened lower. The Euro Stoxx 50 index fell by 1.93%, the UK FTSE 100 index dropped 0.82%, the France CAC 40 index declined 1.32%, and the Germany DAX 30 index decreased by 1.51%.

On April 2, the A-shares closed, with the market experiencing a day-long fluctuation and adjustment. The three major indices all declined, individual stocks mostly fell, and over 4,300 stocks in Shanghai, Shenzhen, and Beijing turned red. Today’s trading volume exceeded 1.85 trillion yuan. By the close, the Shanghai Composite Index dropped 0.74%, the Shenzhen Component Index fell 1.6%, and the ChiNext Index declined 2.31%. Oil and gas stocks defied the trend and strengthened, with stocks like Bohui Co., Ltd. (300839.SZ), Hesong Petroleum (603353.SH), Beiken Energy (002828.SZ), and China Oil Engineering (600339.SH) hitting the daily limit up. Pharmaceutical stocks were active with repeated gains, with JinYao Pharmaceutical (600488.SH) hitting the limit for five consecutive days, and BeiDa Medical (000788.SZ), Yibai Pharmaceutical (600594.SH), and Hefei China also reaching the daily limit. On the downside, the precious metals sector declined, with Xiaocheng Technology (300139.SZ) falling over 7%; the computing power leasing concept also adjusted, with Litong Electronics (603629.SH) dropping over 8%.

Meanwhile, major European stock indices all opened lower. The Euro Stoxx 50 index fell by 1.93%, the UK FTSE 100 index declined 0.82%, the France CAC 40 index dropped 1.32%, and the Germany DAX 30 index decreased by 1.51%.

Earlier in the day, the stock markets in Japan and South Korea also closed lower. The Nikkei 225 index fell 2.4%, closing at 52,463.27 points; the Korea KOSPI index declined 4.47%, closing at 5,233.79 points. Semiconductor and chip stocks plunged significantly, with SK Hynix dropping over 6%, Samsung Electronics, Edwan Testing, and Hanmi Semiconductor falling over 5%, and Kioxia and Koy Semiconductor dropping over 4%.

On the news front, at 9 p.m. U.S. local time on April 1 (which is 9 a.m. Beijing time on April 2), U.S. President Donald Trump delivered a nationwide speech, stating that in the next two to three weeks, the U.S. will launch extremely fierce strikes against Iran. Trump also said that the U.S. did not need the Strait of Hormuz in the past, and does not need it now. Following this news, Asia-Pacific stock markets declined, the U.S. dollar strengthened, and oil prices surged, fueling market expectations of rising U.S. inflation. Coupled with a short-term rise in U.S. Treasury yields, the cost of holding gold increased, leading to pressure on international gold and silver futures prices during Asian trading hours on April 2.