Asian Stocks Plunge as Trade Tensions Mount and Recession Fears Trigger Global Selloff.

Asian stock markets plunged Monday amid intensifying recession fears and escalating trade tensions, as the White House stood firm on its tariff plans. Investors increasingly bet on aggressive U.S. rate cuts, with futures pricing in nearly five quarter-point cuts this year, pulling Treasury yields sharply lower.

President Donald Trump reiterated his stance on trade, saying no deal would be made with China until the U.S. trade deficit is addressed. Beijing responded by letting markets interpret its retaliatory plans, adding to the uncertainty.

S&P 500 futures fell 3.1%, while Nasdaq futures dropped 4%, deepening last week’s $6 trillion market loss. European futures also sank, with EUROSTOXX 50 down 3%, FTSE futures off 2.7%, and Germany’s DAX down 3.5%. In Asia, Japan’s Nikkei plunged 6%, South Korea shed 5%, and Chinese blue chips slid 4.4%. Taiwan’s index dropped nearly 10% following a market holiday, prompting a short-selling curb.

Oil prices extended losses, with Brent crude falling to $64.23 per barrel and U.S. crude to $60.60. The flight to safety pushed 10-year Treasury yields down to 3.916% and boosted Fed fund futures, now reflecting a 56% chance of a rate cut by May.

The dollar weakened against safe-haven currencies, slipping 0.4% versus the yen and 0.6% against the Swiss franc. Meanwhile, inflation concerns linger, with U.S. CPI expected to rise 0.3% in March. Analysts warn tariffs may soon push consumer prices and business costs higher, eroding profit margins.

Gold dipped 0.3% to $3,026 as investors scrambled to cover margin calls, fueling fears of a broader fire sale. As earnings season begins, Goldman Sachs anticipates fewer companies will issue forward guidance due to tariff-related uncertainty and shrinking margins.