World shares fall further, with Tokyo down nearly 4%, as Trump threatens still more tariff hikes

By ELAINE KURTENBACH Associated Press Business Writer BANGKOK AP World shares slumped on Wednesday after U S President Donald Trump s latest tariff hikes took effect and he threatened to add still more Uncertainty is running high about what Trump will do next in his exchange war In a speech Tuesday night he commented plans tariffs on pharmaceuticals so that more medications would be made in the U S European markets extended their losses Germany s DAX slipped to In Paris the CAC declined to Britain s FTSE gave up to Although Trump s latest tariffs include a massive levy on U S imports of Chinese products markets in China reversed early losses gaining ground on Wednesday Massive share buybacks by big state-run expenditure funds and other state companies that often are instructed to assistance the field in times of situation helped boost stock prices Investors also are expecting the leadership to step up spending and other measures to help counter the impact of the tariffs which will hit hardest the small manufacturers and traders that create the majority jobs Beijing issued a program paper Wednesday reiterating China s right to protect its businesses with unspecified countermeasures while it emphasized it preferred to resolve pact issues through dialogue The paper also argued that taking into account business in services and U S companies operations in China economic exchange between the two countries is roughly in balance Hong Kong s Hang Seng rose while the Shanghai Composite index closed higher Thailand s benchmark also rose apparently due to speculation that Beijing might be preparing to hold talks with the Trump administration The unconfirmed rumors helped push the future for the S P up while that for the Dow was unchanged Elsewhere markets remained gloomy Japan s Nikkei closed lower at and Prime Minister Shigeru Ishiba convened a meeting of top financial ministers to reiterate his call for them to do what they can to mitigate the damage from tariffs to Japanese automakers and other manufacturers Taiwan led the losses in Asia as its Taiex plunged Big tech industries were among the biggest decliners Computer chip giant TSMC Corp dropped while iPhone maker Hon Hai Precision Industry plunged In India the Sensex declined as the central bank cut its benchmark interest rate while Bangkok s SET shed South Korea s Kospi lost to and the regime noted it would provide help for its beleaguered automakers The S P ASX in Australia declined to Shares in New Zealand also fell Related Articles Texas AG Ken Paxton launches Senate primary challenge against Republican Sen John Cornyn US egg giant Cal-Maine says ruling body is studying price increases Outrage builds as video shows Idaho police shooting a knife-wielding teenager with autism New Mexico governor mobilizes National Guard to tackle crime exigency in Albuquerque IRS acting commissioner is resigning after deal to share immigrants tax information with ICE On Tuesday the S P dropped after wiping out an early gain of That took it nearly below its record set in February The Dow Jones Industrial Average dropped while the Nasdaq composite lost Stocks had rallied globally on Tuesday with indexes up in Tokyo in Paris and in Shanghai Any optimism or buying enthusiasm appeared to have dissipated by the time the sharply higher tariffs became reality Analysts say the markets will have more swings up and down given uncertainty over how long Trump will keep the stiff tariffs on imports which will raise prices for U S shoppers and slow the business sector If they persist economists and investors expect them to cause a recession If Trump lowers them through negotiations relatively promptly the worst-case scenario might be avoided Hope still remains on Wall Street that negotiations may be practicable which helped drive the morning s rally Trump announced Tuesday that a conversation with South Korea s acting president helped them reach the confines and probability of a great DEAL for both countries Trump s agreement war is an attack on the globalization that s shaped the world s financial market and helped bring down prices for products on store shelves but also caused manufacturing jobs to leave for other countries Trump has explained he wants to narrow agreement deficits which measure how much more the United States imports from other countries than it sends to them as exports In other dealings early Wednesday U S benchmark crude oil fell to per barrel Brent crude the international standard shed to per barrel The U S dollar fell to Japanese yen from yen The euro rose to from The price of gold rose to an ounce