Asian stock markets tumble – with Hong Kong’s Hang Seng suffering worst fall for 28 years
Asian stock markets have fallen dramatically amid escalating fears of a global trade war – as Donald Trump called his tariffs “medicine” and showed no sign of backing down.
Hong Kong’s Hang Seng index of shares closed down 13.2% – its biggest one-day drop since 1997, while the Shanghai composite index lost 7.3% – the worst fall there since 2020.
Elsewhere, Japan’s Nikkei 225 lost 7.8%, while London’s FTSE 100 was down 4.85% by 9am.
Tariffs latest – FTSE falls after Asian markets tumble
US stock market futures signalled further losses were ahead when trading begins in America later.
At 4am EST, the S&P 500 futures was down 4.93%, the Dow Jones 4.32% and the Nasdaq 5.33%.
Markets are reacting to ongoing uncertainty over the impact of President Trump’s tariff regime on goods imported to the US, which he announced last week.
A screen showing the Hang Seng index in central Hong Kong. Pic: Reuters
Speaking on Air Force One on Sunday, Mr Trump said foreign governments would have to pay “a lot of money” to lift his tariffs.
“I don’t want anything to go down. But sometimes you have to take medicine to fix something,” he said.
The US president said world leaders were trying to convince him to lower further tariffs, which are due to come into effect this week.
“I spoke to a lot of leaders, European, Asian, from all over the world,” Mr Trump told reporters.
“They’re dying to make a deal. And I said, we’re not going to have deficits with your country.
“We’re not going to do that because to me, a deficit is a loss. We’re going to have surpluses or, at worst, going to be breaking even.”
Mr Trump, who spent much of the weekend playing golf in Florida, posted on his Truth Social platform: “WE WILL WIN. HANG TOUGH, it won’t be easy.”
On Saturday, US customs agents began collecting Mr Trump’s baseline 10% tariff.
Higher “reciprocal” tariffs of between 11% and 50% – depending on the country – are due to come into effect on Wednesday.
President Trump believes his policy will ultimately make the US richer, creating jobs and forcing companies to relocate more of their manufacturing to America.
However, his announcement has jolted economies around the world, triggered retaliatory levies from China and sparked fears of a global trade war.
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Trump’s tariffs: What you need to know
Investors and world leaders are unsure whether the US tariffs are here to stay or a negotiating tactic to win concessions from other countries.
Richard Flax, chief investment officer at Moneyfarm, said: “I guess there was some hope over the weekend that maybe we would see this as part of the start of a negotiation.
“But the messages that we’ve so far seen suggest that the President Trump is comfortable with the market reaction and that he’s going to continue on this course.
Goldman Sachs has raised the odds of a US recession to 45%, joining other investment banks that have also revised forecasts.
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In the UK, Sir Keir Starmer has promised “bold changes” and said he would relax rules around electric vehicles as British carmakers deal with a new 25% US tariff on vehicles.
The prime minister said “global trade is being transformed” by President Trump’s actions.
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‘Nothing off the table’ over tariffs
Meanwhile, KPMG warned tariffs on UK exports could see GDP growth fall to 0.8% in 2025 and 2026.
The accountancy firm said higher tariffs on specific categories, such as cars, aluminium and steel, would more than offset the exemption on pharmaceutical exports, leaving the effective tariff rate on UK exports around 12%.
Yael Selfin, chief economist at KPMG UK, said: “Given the economic impact that tariffs would cause, there is a strong incentive to seek a negotiated settlement that diminishes the need for tariffs.
“The UK automotive manufacturing sector is particularly exposed given the complex supply chains of some producers.”
World
Trump doubles down on Putin criticism – as Russia offers Ukraine a date and location for peace talks
Donald Trump has doubled down on his criticism of Vladimir Putin – adding he will know soon if the Russian leader is just “tapping” him along.
The US president told reporters at the White House that he believed his counterpart in Moscow may be intentionally delaying ceasefire talks, while he also expressed disappointment at heavy Russian bombing over the weekend.
While Mr Trump has so far stopped short of imposing sanctions – to avoid, he says, “screwing up” negotiations – he warned his stance could change.
Ukraine Q&A: Are we any closer to war ending?
The president said: “We’re going to find out whether or not he’s tapping us along or not, and if he is, we’ll respond a little differently,” adding that he “can’t tell you” if Mr Putin wanted peace.
Donald Trump. Pic: Reuters
His comments in the Oval Office came minutes after Russia’s foreign minister announced that the Kremlin had offered Ukraine a second round of talks on 2 June in Istanbul.
Kyiv did not immediately respond to the proposal, which Sergei Lavrov said would see Moscow hand their proposals for a potential peace deal directly to Ukraine.
“We hope that all those who are sincerely, and not just in words, interested in the success of the peace process will support holding a new round of direct Russian-Ukrainian talks in Istanbul,” Mr Lavrov added.
Later on Wednesday, Ukraine’s defence minister Rustem Umerov said his government was “not against” further meetings, but called for Russia to deliver its memorandum to Kyiv beforehand.
Meanwhile, Mr Lavrov also hit out at Germany for agreeing to finance the production of long-range missiles in Ukraine, accusing Berlin of showing it is “already a participant in the war”.
However, German leader Friedrich Merz declined to say that his country would hand over the Taurus missiles that Ukraine’s president Volodymyr Zelenskyy – who was in Berlin on Wednesday – has long wanted.
Ukraine’s need for ammunition has become all the more urgent after Russia launched some of the largest aerial assaults of the war so far over the weekend.
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Russia said it had downed 296 Ukrainian drones over 13 regions overnight, while Ukraine said it had struck several weapon production sites.
Kyiv, in turn, said Moscow had launched 88 drones and five ballistic missiles since Tuesday.
World
Hamas’s Gaza chief ‘eliminated’, says Netanyahu – but military sources say they cannot confirm death
Hamas’s Gaza chief Mohammed Sinwar has been “eliminated”, according to Israel’s Prime Minister Benjamin Netanyahu.
But Israeli military sources have said they are not yet able to confirm the death.
Hamas has also not yet confirmed the apparent killing of its leader.
Meanwhile, with Gaza on the brink of famine, the Palestinian ambassador to the United Nations broke down in tears as he spoke of the suffering of its people.
Palestinian ambassador Riyad Mansour broke down in tears as he spoke of the suffering of people in Gaza
Riyah Mansour told the Security Council: “Children are dying of starvation. The images of mothers embracing their motionless bodies. Caressing their hair, talking to them, apologising to them, is unbearable.”
He added: “I have grandchildren. I know what they mean to their families. And to see this situation over the Palestinians without us having hearts to do something is beyond the ability of any normal human being to tolerate. Flames and hunger are devouring Palestinian children. This is why we are so outraged as Palestinians everywhere.”
Sinwar was one of Israel‘s most wanted and the younger brother of the Palestinian militant group’s former leader Yahya Sinwar.
The older sibling was the mastermind of the October 7 2023 attack, which killed 1,200 people in Israel, with around 250 others taken hostage into Gaza.
The attack triggered Israel’s assault on Gaza which decimated the territory, with more than 53,000 people killed, mostly women and children, and over two million displaced, according to health officials, who do not distinguish between civilians and combatants in their tally of fatalities.
Yahya Sinwar was killed by Israel in October 2024. File pic: AP
Yahya Sinwar was killed in a gun battle with Israeli troops in Gaza last October. His younger sibling was believed to have then become the head of Hamas’s armed wing.
Speaking to the Knesset on Wednesday, Mr Netanyahu included Mohammed Sinwar in a list of Hamas leaders killed in Israeli strikes. Later, Israel Defence Forces (IDF) sources said they were not yet able to confirm the death.
The prime minister said: “We have killed tens of thousands of terrorists. We killed (Mohammed) Deif, (Ismail) Haniyeh, Yahya Sinwar and Mohammed Sinwar.” He did not elaborate.
Benjamin Netanyahu’s claimed could not be confirmed. Pic: AP
Mohammed Sinwar had reportedly been the target of an Israeli strike on a hospital in southern Gaza on 13 May and Mr Netanyahu said on 21 May that it was likely he had been killed.
The Israeli military had said it struck a Hamas command centre under the European Hospital in the Sinwars’ hometown of Khan Younis, and it declined to comment on whether Sinwar was targeted or killed.
At least six people were killed in the strike and 40 wounded, Gaza’s health ministry said at the time.
Sinwar rose through ranks
Like his older brother, Mohammed Sinwar joined Hamas after it was founded in the late 1980s as the Palestinian branch of the Muslim Brotherhood. He became a member of the group’s military wing, known as the Qassam Brigades.
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Sinwar rose through the ranks to become a member of its so-called joint chiefs of staff, bringing him close to its longtime commander, Deif, who was killed in a strike last year.
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“In the last two days, we have been in a dramatic turn towards a complete defeat of Hamas,” the Israeli leader told the Knesset.
Mr Netanyahu also spoke about how Israel was “taking control of food distribution”, a reference to a new aid distribution system that has been criticised and boycotted by humanitarian groups and the UN.
One killed at site of aid hub
The development comes after one person was killed and 48 others injured when forces opened fire on a crowd that overwhelmed an aid hub in Gaza, according to local health officials.
Palestinians have become increasingly desperate for food after almost three months of Israeli border closures. A blockade has recently been eased.
People broke through fences around the distribution site on Wednesday, and a journalist with the Associated Press said they heard Israeli tank and gunfire, and saw a military helicopter firing flares.
It was not yet known whether the death and injuries were caused by Israeli forces, private contractors or others.
The Israeli and US-backed Gaza Humanitarian Foundation, which set up the hub outside Rafah, said its military contractors had not fired on the crowd but “fell back” before resuming aid operations. Israel said its troops nearby had fired warning shots.
The UN and other humanitarian organisations have rejected the new system, saying it will not meet the needs of Gaza’s 2.3 million people and allows Israel to use food to control the population.
Israel has vowed to seize control of Gaza and fight until Hamas is destroyed or disarmed and exiled, and until the militant group returns the last 58 hostages, including around a third thought to be still alive.
‘This is a man-made catastrophe’
Meanwhile, a US trauma surgeon who has been working in Gaza urged the UN Security Council to not “claim ignorance” about the humanitarian devastation.
Dr Feroze Sidhwa said: “Let’s not forget, this is a man-made catastrophe. It is entirely preventable. Participating in it or not allowing it to happen is a choice.
“This is a deliberate denial of conditions necessary for life: food, shelter, water and medicine. Preventing genocide means refusing to normalise these atrocities.”
The UN World Health Organization has documented around 700 attacks on healthcare facilities in Gaza during the war. Israel accuses Hamas of using hospitals as command centres and to hide fighters.
Andrew Tate and his brother Tristan Tate have been charged with rape and other offences in the UK.
Andrew Tate, 38, faces 10 charges, including rape, actual bodily harm, human trafficking and controlling prostitution for gain, relating to three women.
His brother Tristan Tate, 36, faces 11 charges relating to one woman – including rape, actual bodily harm and human trafficking.
The charges were authorised in January 2024, but full details have only been released now.
Bedfordshire Police issued an international arrest warrant for the brothers over allegations, which they “unequivocally deny”, said to have occurred between 2012 and 2015.
The Tate brothers are facing separate allegations of trafficking minors, sexual intercourse with a minor and money laundering in Romania.
They are also accused of human trafficking and forming a criminal gang to sexually exploit women in a different case, which has been sent back to prosecutors.
They are due to be extradited to the UK following the conclusion of proceedings in Romania.
Andrew Tate and his brother Tristan outside a Bucharest court in January. File pic: Inquam Photos/Octav Ganea via Reuters
A Crown Prosecution Service (CPS) spokesperson said: “We can confirm that we have authorised charges against Andrew and Tristan Tate for offences including rape, human trafficking, controlling prostitution and actual bodily harm against three women.
“These charging decisions followed receipt of a file of evidence from Bedfordshire Police.
“A European Arrest Warrant was issued in England in 2024, and as a result the Romanian courts ordered the extradition to the UK of Andrew and Tristan Tate.”
The spokesperson added: “However, the domestic criminal matters in Romania must be settled first.
“The Crown Prosecution Service reminds everyone that criminal proceedings are active, and the defendants have the right to a fair trial.
“It is extremely important that there be no reporting, commentary or sharing of information online which could in any way prejudice these proceedings.”
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Representatives for Andrew Tate have been contacted by Sky News for comment.
Lawyer Matt Jury, of McCue Jury & Partners, representing several alleged British victims of Andrew Tate, said: “We welcome the clarity from the Crown Prosecution Service that our authorities are working to ensure the Tates face justice here in the UK – they cannot be allowed to escape extradition.
“At the same time, we ask once more that CPS admit its mistake in failing to prosecute Tate when he lived in the UK and finally charge him for the rape and assault of the other three women, our clients, who originally filed criminal complaints against him as long ago as 2014 but were failed by the system.
“They deserve justice, too.”
The allegations were subject to a police investigation, which was closed in 2019.
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