Virendra Pandit
New Delhi: Global markets, especially in Asia, slid on Tuesday after US President Donald Trump’s fresh tariff threats linked to Greenland as Europe and other regions weighed on risk sentiment, according to media reports.
In India, benchmark Sensex fell 1.28 percent or 1065 points to close at 82,180, while Nifty50 fell 1.38 percent or 353 points to close at 25,232.
Stocks fell in Japan as well, where Prime Minister Sanae Takaichi has called for a snap poll on February 8, triggering political instability. Yields on Japan’s 40-year government bond rose to 4 percent for the first time.
Asia-Pacific markets fell Tuesday as investors assessed renewed US tariff threats tied to Greenland, raising concerns about escalating trade tensions with Europe.
Investors closely watched developments in Japanese markets after PM Takaichi announced her plans to dissolve parliament and called for a snap election on February 8.
Japan’s Nikkei 225 slid 1.11 percent to close at 52,991.1 while the Topix declined 0.84 percent to end at 3,625.6. South Korea’s Kospi declined 0.39 percent to 4,885.75 after hitting a record high, while the small-cap Kosdaq jumped 0.83 percent to 976.37.
Japan’s ruling coalition holds a one-seat Lower House majority following its formation in October, when Takaichi became prime minister after her predecessor resigned. While the snap election would raise near-term political uncertainty, it could bring greater policy clarity if a government emerges with a stronger mandate, Fitch Group said in a note.
European states are reportedly discussing counter-tariffs and broader punitive economic measures to the tune of nearly USD 100 billion, in response to fresh tariff threats from President Donald Trump, further straining relations over Greenland.
Trump on Saturday announced that exports from eight European nations would start attracting additional tariffs at 10 percent from February 1, and climb to 25 percent by June 1 if talks fail to secure US control of Greenland, a mineral-rich, semi-autonomous island under Danish control.
Hong Kong’s Hang Seng Index rose 0.29 percent to 26,487.51, while mainland China’s CSI 300 slid 0.33 percent to 4,718.88 after heightened regulatory scrutiny following a surge in trading activity.
Authorities moved to rein in leverage after onshore market turnover hit record levels, driven in part by a rise in margin trading balances to an all-time high.
Fitch expects, reports said, government debt to remain elevated over the medium term, but to gradually decline as stronger nominal GDP growth offsets wider fiscal deficits and higher borrowing costs.
Consolidated general government debt is projected to ease to the mid-190 percent range of GDP by fiscal 2029, from an estimated 199.5 percent in fiscal 2025 and a peak of 222 percent in fiscal 2020.
Australia’s S&P/ASX 200 lost 0.66 percent to 8,815.9.
The US stock futures pointed to a downbeat session on Wall Street as Trump intensifies his rhetoric on Greenland.