Key events:

• A significant plunge in global stock markets occurred as concerns about the escalating US-China trade war intensified.
• President Trump’s announcement of a pause on most tariffs was met with skepticism, leading to renewed fears of a financially perilous standoff.
• The Hang Seng Index fell by 10% over the week, with significant declines in key Asian indices following steep losses on Wall Street.

Asian stock markets faced a steep decline as investors reacted to ongoing uncertainties following President Trump's announcement regarding tariffs. Major indices, including Japan's Nikkei 225 and South Korea's Kospi, experienced significant losses, with the Nikkei alone dropping 5.6% amid fears of a deepening trade conflict with China.

The S&P 500 plunged more than 3% following Trump's shock tariff pause lasting 90 days, which investors viewed as a temporary fix to the ongoing trade war. On Thursday, US markets reacted negatively after the White House clarified that tariffs on Chinese goods had actually increased to 145% instead of the previously stated 125%.

Concerns have been compounded by statements from Treasury Secretary Scott Bessent, who indicated that the US might consider delisting Chinese companies from American stock exchanges, further escalating tensions between the two largest economies.

“We’re still staring at a full-blown US-China economic divorce,” commented Stephen Innes of SPI Asset Management, highlighting the market's nervousness amid the heightened recession risks. Analysts at JPMorgan have raised fears of a recession, believing that the likelihood of an economic downturn is now at 79%.

Across the globe, the declines in stock prices were characterized by cautious investor sentiment. While markets initially celebrated Trump's tariff pause with a brief rally, the resurgence of fears surrounding trade tensions quickly dampened the mood.

Such volatile trading highlights a precarious economic landscape as the US-China trade conflict continues to evolve, with significant implications for not just the two nations, but for the global economy as a whole.

For further insights, check out the developments at Channel News Asia.