Global markets kicked off the week with a sharp downturn

Hi everyone. I’m Stephanie LI.Coming up on today’s programGlobal markets open on a tailspin on Monday caused by Washington’s “reciprocal tariffs” policy;China’s foreign exchange reserves hovering at over $3.2 trillion for 16 consecutive months.Here’s what you need to know about China in the past 24 hours Global markets kicked off the week with a sharp downturn on Monday amid growing jitters over escalating US protectionist tariffs and the ripple effects the tariffs caused all around the world.Japanese markets led losses in Asia in early trade. The benchmark Nikkei 225 plunged 8.03 percent, its weakest level since October 2023.South Korea's Kospi 200 index futures plummeted 6.8 percent, triggering a temporary halt on program-driven sell orders. Trading in Nikkei 225 and Topix index futures was also temporarily halted in early session as frenzied selling triggered circuit breakers.Stocks in Singapore dipped over 7 percent at the start of Monday with the Straits Times Index plunging 7.4 percent. Indian shares declined at the beginning of the day, with the key Nifty index dropping over 3 percent. Australia's S&P/ASX 200 index plunged more than 6 percent, extending its decline to over 15 percent from February's peak. This puts the benchmark index within 5 percentage points of entering technical bear market territory.The European market opened lower, with the Euro Stoxx 50 index down 6.2 percent, Germany's DAX dropped 7.1 percent, the UK's FTSE 100 fell 4.1 percent, Italy's FTSE MIB declined 7.4 percent, and Spain's IBEX 35 dropped 4.9 percent.China’s benchmark Shanghai Composite Index closed down 7.3 percent today, while Hong Kong's Hang Seng Index slumped 13.2 percent. China's Central Huijin Investment has increased its holdings of ETFs and will continue to do so in the future to resolutely maintain the stable operation of the capital market, the Chinese sovereign fund company under China Investment Corporation announced on Monday afternoon, emphasizing its confidence in the A-share market. The impact of US tariff policies continues to reverberate across global financial markets, with US stock index futures, crude oil, cryptocurrencies, and precious metals all plunging further during Monday's early Asian trading session.After last week's nearly 10 percent drop in US equities, Nasdaq 100 futures tumbled more than 5 percent at the open, while S&P 500 futures slumped over 4 percent. Meanwhile, the yield on the benchmark 2-year US Treasury note fell to 3.445 percent, hitting its lowest level since September 2022 as investors sought safer assets amid the market selloff.As of the end of March, China's foreign exchange reserves stood at $3.24 trillion, reflecting an increase of 0.42 percent from a month earlier, the State Administration of Foreign Exchange (SAFE) revealed today. This marks the 16th consecutive month that China's foreign exchange reserves have remained largely stable above $3.2 trillion.China's countermeasures against US' abuse of tariffs are not only aimed at protecting the legal rights of enterprises, including US-funded enterprises, but also at urging the US to return to the correct path of multilateral trade, said Ling Ji, China's vice commerce minister and deputy China international trade representative on Sunday when hosting a roundtable meeting with representatives from over 20 American companies, including Tesla, GE Healthcare, and Medtronic, according to the official website of the commerce ministry on Monday. These remarks came as China on Friday announced countermeasures against the US' so-called "reciprocal tariffs" on its trading partners including China, with moves including imposing additional 34-percent tariffs on all products imported from the US and filing a lawsuit with the World Trade Organization concerning the US "reciprocal tariffs."GBA expressCross-boundary travel between Hong Kong and the Chinese mainland surged 18.9 percent year-on-year during the Qingming Festival, with 3.39 million passenger trips recorded, as families performed their annual tomb-sweeping traditions and went on a three-day holiday break. According to the SAR’s Immigration Department, the average number of daily passenger trips between April 4 and 6 reached 1.13 million daily – up from the daily average of 950,000 trips made during last year’s 11-day Easter and Qingming holidays.Chinese biotech firm Duality Biotherapeutics launched an initial public offering (IPO) of up to HK$1.56 billion on Monday in Hong Kong, testing investor appetite amid a global stock market rout. The company is selling 15.07 million shares in the price range of HK$94.60 to HK$103.2 each, according to its prospectus.Industry and company newsMultiple Chinese A-share listed companies, including Chinese home appliance giant Media Group and Shenzhen-based medical technology and solutions supplier Mindray, have publicly addressed the potential impact of the latest US tariff hikes, emphasizing limited exposure to the US market and proactive global supply chain adjustments to cushion disruptions. Suzhou Recodeal Interconnect System Co, a Chinese manufacturer of high-tech connection systems, said on Sunday that the latest US tariffs will further drive the company's localized production and sales at its overseas factories.China has added 11 US companies, including drone makers Skydio and Brinc Drones, to its unreliable entity list and 16 others, including High Point Aerotechnologies and Universal Logistics, to its export control list, the Ministry of Commerce announced.The Qingming Festival holiday is expected to bring about 790 million cross-regional trips in China, an increase of 7.1 percent year-on-year, making a record new high in the number of trips during the holiday, according to the latest data from the Ministry of Transport. The country’s box office during the holiday topped 300 million yuan as of 5 p.m. yesterday. Fantasy adventure comedy A Minecraft Movie, based on the hit video game, led the box office, followed by crime flick My Girls and Mumu.The China Retail Prosperity Index, released on Sunday by the China General Chamber of Commerce (CGCC), edged up 0.3 point from March to 50.5, which is in the expansion territory. The CGCC said that the uptick mainly stemmed from merchandise operations and leasing activities, reflecting stronger momentum after a raft of pro‑consumption policies took hold.Asia-Pacific highlightsThe third batch of emergency humanitarian earthquake relief supplies provided by the Chinese government arrived in Yangon, Myanmar at noon on Saturday. In addition, Chinese rescue forces, including the Chinese International Rescue and Search and the China Rescue and Search, have jointly carried out medical outreach activities in Mandalay, Myanmar. The death toll from Myanmar's earthquake reached 3,564 as of Sunday evening.Associate Director-General of Investment Promotion at Invest Hong Kong (InvestHK) Charles Ng Siong-kwong started a visit to the Middle East on Sunday, with key engagements in Saudi Arabia and the United Arab Emirates (UAE), to promote the SAR as a premier gateway for Middle Eastern businesses seeking opportunities on the Chinese mainland and in the broader Asia-Pacific region.