Asian stock markets tumble – with Hong Kong’s Hang Seng suffering worst fall for 28 years

Published

5 months ago

April 7, 2025

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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.

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.”

Reality hits that trade war no longer just a threat

China’s announcement of its tariff retaliation came late afternoon on Friday local time.

Most Asian markets closed shortly after – and markets in China, Hong Kong and Taiwan were closed for a public holiday – meaning the scale of the hit did not play out until today.

This morning we are getting a sense of the impact. Dramatic falls across all Asian markets clearly signal a realisation a global trade war is no longer just a threat, but a reality here to stay, and a global recession could yet follow.

Up until Friday, China’s response to Donald Trump’s tariffs had been perceived as restrained and designed to avoid escalation, the markets had reacted accordingly.

But that all changed last week when Mr Trump’s new 34% levy on all Chinese goods was matched by China with an identical tax. Both sit on top of previous tariffs levied, meaning many goods now face rates in excess of 50%.

These are numbers that make most trade between the world’s two biggest economies almost impossible and that will have a global impact.

China has clearly decided any forthcoming pain will have to be managed, and not being seen to be cowed and bullied by Mr Trump is being deemed more important.

But the scale of the retaliation will have further spooked the markets as it makes the prospect of negotiation and retreat increasingly unlikely.

Mr Trump added to the atmosphere of intransigence when he told the media on Sunday the trade deficit with China would need to be addressed before any deal could be done. The complete lack of concern from the White House over the weekend will also not have helped.

While smaller economies like Japan, South Korea, Cambodia and Vietnam are all lining up to attempt to negotiate, there are a lot of nations in that queue.

There is a sense none of this will be easily rectified.

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.

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.

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

‘At least 16’ killed in latest Israeli attacks on Gaza – as 10 children arrive in UK for NHS treatment

Published

5 hours ago

September 17, 2025

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'At least 16' killed in latest Israeli attacks on Gaza - as 10 children arrive in UK for NHS treatment

At least 16 people are said to have died overnight in Israeli attacks in Gaza – as the first group of 10 children arrived in the UK for urgent NHS treatment.

Officials said more than half of those killed in the latest attacks were in Gaza City, where Israel this week began a major ground offensive.

A mother and her child died at an apartment in the city’s Shati refugee camp, according to the Shifa hospital.

The al-Adwa and Nasser hospitals said other victims included a pregnant woman – among three killed when a house was hit in the Nuseirat refugee camp in central Gaza – and two parents and their child in the Muwasi area west of Khan Younis.

The Israel Defence Forces (IDF) launched its ground assault on Tuesday, in what it called a “new phase” in its bid to destroy Hamas and force the release of the remaining hostages.

It said it was looking into the deaths caused by the latest strikes.

Troops and tanks continued to push deeper into Gaza City on Wednesday despite widespread condemnation of the attempt to take full control of the city.

UK Foreign Secretary Yvette Cooper has called the operation “utterly reckless and appalling”.

Ms Cooper – who last night helped greet the pro-Israel President Trump – said it would “only bring more bloodshed, kill more innocent civilians & endanger the remaining hostages”.

Meanwhile, 10 critically ill and injured children from Gaza have arrived in Britain for medical care alongside 50 companions, the World Health Organisation said on Wednesday.

It said they were first evacuated to Jordan and that “robust” security checks were undertaken before the group got approval to travel.

The foreign secretary said the children were “unable to get the medical care they need to survive” in Gaza.

More are expected to arrive in the coming weeks, in what Health Secretary Wes Streeting said “reflects the very best of our NHS values – compassion, care and expertise when it matters most”.

A small number of children were previously brought to the UK and are being treated privately through the Project Pure Hope initiative.

It comes as a coalition of aid groups today urged the international community to do more to stop Israel’s attacks, which it said had caused “an unprecedented humanitarian catastrophe”.

“States must use every available political, economic, and legal tool at their disposal to intervene. Rhetoric and half measures are not enough. This moment demands decisive action,” said a statement signed by the heads of more than 20 organisations working in Gaza.

The call comes a day after a UN commission said Israel was committing genocide in Gaza – a claim the country vehemently denies as “distorted and false”.

Sky News analysis shows thousands of families remain in crowded tent camps in Gaza City, with the UN estimating last week that a million people remain there. Israel, however, believes 40% of the population has already fled south.

Many are taking what little they can and attempting the perilous journey south after Israel warned them to evacuate ahead of it new offensive.

The IDF said another route south for those fleeing would open from noon local time on Wednesday, running along Salah al-Din street along Gaza’s coastline, for two days.

Israel has not said how long its Gaza City operation will last, but that it will involve both air and ground forces and the number of soldiers will increase over the coming days.

It insists it takes strenuous efforts to issue warnings and avoid civilian casualties, but that it’s complicated by Hamas deliberately embedding itself in civilian areas.

Health officials in Gaza say nearly 65,000 people have died in the two years of the war – a figure that does not specify the number of Hamas members killed.

The terror attack on Israel in October 2023 killed around 1,200 and saw 251 taken hostage. Forty-eight remain in Gaza, but fewer then half are though to still be alive.

World

Pressure mounts on PM to raise Israel’s Gaza offensive with Trump

Published

11 hours ago

September 17, 2025

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Pressure mounts on PM to raise Israel's Gaza offensive with Trump

Sir Keir Starmer is under mounting pressure to raise Israel’s bombardment of Gaza with Donald Trump during his UK state visit, after a UN Commission said a genocide was taking place.

Liberal Democrat leader Sir Ed Davey used the president’s arrival on Tuesday night to call for action on the escalating situation, as Israeli forces advance in Gaza City.

Sky News analysis has found thousands of families remain in the city’s crowded tent camps, despite a ground offensive beginning yesterday.

Sir Ed, who is boycotting the state dinner being held for Mr Trump, said Sir Keir must “press” the president now.

He said: “What is happening in Gaza is a genocide. And the president of the United States, who wants a Nobel Peace Prize, is doing nothing to stop it.”

On Tuesday, a United Nations Commission agreed Israel was committing genocide in Gaza – the first time such an explosive allegation has been made publicly by a UN body.

Israel‘s foreign ministry said it “categorically rejects this distorted and false report” and called for the commission to be abolished.

‘We cannot be bystanders’

Reports suggest the situation will be a talking point between Sir Keir and Mr Trump during his visit.

It comes before the UK is due to recognise a Palestinian state at the UN General Assembly later this month, along with allies including Canada and France.

In a late night statement, Canada’s foreign ministry described the Gaza City offensive as “horrific”.

Lib Dem leader Sir Ed added: “We have long said that Hamas is genocidal and condemned them for their actions.

“Now, I think we have to say that what the Netanyahu government is doing amounts to genocide.”

Labour MP Rosena Allin-Khan, a former shadow minister, also called on her party leader to make discussing the situation in Gaza with Mr Trump a “top priority”.

Speaking to Sky News’ Politics Hub With Sophy Ridge, she said: “We say ‘never again’ when we look at Bosnia and Rwanda, but here we are again, and it’s been livestreamed, and we’ve all seen it.

“We cannot be bystanders to a genocide.”

UN report pulls no punches

The accusation of genocide is made by the UN Independent International Commission of Inquiry on the Occupied Palestinian Territory.

It alleges Israel has been “killing Palestinians or forcing them to live in inhumane conditions that led to death; causing serious bodily or mental harm, including through torture, displacement and sexual crime; deliberately imposing inhumane conditions, and fourthly, imposing measures intending to prevent births”.

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Earlier this month, the International Association of Genocide Scholars also passed a resolution stating that Israel’s conduct passed the threshold of committing genocide.

However, a report from the British government said it had “not concluded” that Israel intended to “destroy in whole or in part a national, ethnic, racial or religious group”.

Nearly 65,000 people are now believed to have died, according to figures collated by Gaza’s Hamas-run health ministry. It does not distinguish between civilians and combatants in its count.

World

Thousands of families remain in Gaza City as Israeli army advances

Published

18 hours ago

September 16, 2025

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Thousands of families remain in Gaza City as Israeli army advances

As the Israeli army advances on Gaza City, thousands of families remain in the city’s crowded tent camps.

Sky News analysis of satellite imagery taken on Monday 15 September shows tent camps stretching across the western half of the city.

A close-up view shows one camp spilling out on to the city’s beaches.

The Israel Defence Forces (IDF) launched its ground assault overnight on Tuesday 16 September, in what the military said was a “new phase” in its offensive.

“Gaza is burning,” defence minister Israel Katz posted on X as the operation began. “IDF soldiers are fighting bravely to create the conditions for the release of the hostages and the defeat of Hamas.”

UK Foreign Secretary Yvette Cooper described the offensive as “utterly reckless and appalling”, adding that it “will only bring more bloodshed, kill more innocent civilians & endanger the remaining hostages”.

Footage verified by Sky News shows Israeli tanks entering the Gaza Strip from the north overnight on Tuesday.

Israeli soldiers later filmed themselves in an area just north of Gaza City.

Satellite imagery taken a day earlier shows that while some tent camps in the area have been abandoned in the past few days, many others have not.

The IDF advance comes after an intense week of airstrikes targeting buildings in Gaza City. Sky News has verified dozens of videos showing strikes on buildings across the city.

Several of these strikes destroyed entire tower blocks, such as this strike on Al Ghafari Tower.

At least 50 people were killed across the Gaza Strip on Tuesday, health officials said, most of them in Gaza City.

The IDF said it estimated 40% of people in Gaza City had fled south, while Hamas said that only 190,000 out of 1.3 million residents had left (15%).

An evacuation order for the entire city was first issued on 9 September, with a map on 13 September instructing Palestinians to flee to what Israel has designated a “humanitarian area” along a stretch of sandy coastline known as Al Mawasi.

Satellite imagery from Sunday 14 September shows that the area is already crowded with tents.

Last week, the UN’s Gaza humanitarian country team said that “neither the size nor scale of services provided is fit to support those already there, let alone new arrivals”.

Those fleeing south face a journey of at least 15km (9.3 miles), much of it through Israeli-designated combat zones. Local health officials said at least one vehicle travelling south from Gaza City had been hit by an Israeli strike.

Among those staying put on Tuesday was Um Mohammad, who lives in the Sabra neighbourhood of Gaza City.

“It is like escaping from death towards death, so we are not leaving,” she said.

The IDF says the next stage of the operation will involve both air and ground forces, and that the number of soldiers involved will increase over the coming days.

Additional reporting by Sam Doak, OSINT producer.

The Data and Forensics team is a multi-skilled unit dedicated to providing transparent journalism from Sky News. We gather, analyse and visualise data to tell data-driven stories. We combine traditional reporting skills with advanced analysis of satellite images, social media and other open source information. Through multimedia storytelling we aim to better explain the world while also showing how our journalism is done.