Unlike last Thursday’s resilience, the Nepal Stock Exchange (NEPSE) was not immune to the global stock market rout on Monday, April 7, as fears over a looming trade war escalated following tariff announcements by US President Donald Trump and a swift retaliatory response from China.
On April 3, NEPSE had defied the global downtrend with a modest gain of 0.12% . However, Monday painted a different picture—the benchmark index plunged 1.23%, or 33.33 points, to close at 2,670.06.
The downturn aligns with a global market meltdown that has wiped trillions of dollars off stock valuations. On Monday, Asian markets bore the brunt as investors fled riskier assets for safer havens, according to the Paris-based Agence France-Presse (AFP).
Last week, President Trump imposed a baseline 10% import tariff on all goods entering the United States, with steeper duties targeting countries including key allies—the European Union, Japan, and Taiwan. While the initial tariffs took effect on Saturday, the higher rates are slated to come into force on Wednesday, April 9.
Read: Market Panic Deepens as China Retaliates Against Trump Tariffs
Though most nations have so far held back from retaliatory measures, China hit back late Friday—after Asian markets had closed—announcing a 34% tariff on all U.S. goods starting April 10.
The fallout was severe across Asian markets. Japan’s Nikkei plunged 6.5%, after dipping as much as 8% in early trading. Hong Kong’s Hang Seng dropped nearly 10%, while Shanghai’s Composite Index fell over 4%. Taiwan’s main index, also reacting to the late Chinese announcement, nosedived 10%, and Singapore’s benchmark shed 8.5%.
Read: India's Main Stock Index Falls More Than 3% at Open
In India, the BSE Sensex plummeted by nearly 3,000 points, and the Nifty 50 fell below the psychologically significant 22,000 level, erasing trillions in investor wealth, according to NDTV.
Meanwhile, futures tied to the major U.S. indexes were sharply lower on Sunday, foreshadowing further turmoil when Wall Street opened.
NEPSE was closed on Sunday in observance of the Ram Navami holiday. When it reopened on Monday, it mirrored global anxiety not just in the index drop, but also in reduced trading activity. Total turnover fell sharply to just over Rs 5.65 billion, down from Rs 7.84 billion the previous Thursday. More than 10 million shares changed hands in 55,712 transactions.
All major NEPSE indices ended in the red. The Sensitive Index fell 0.90%, the Float Index slipped 1.14%, and the Sensitive Float Index lost 1%.
Among individual performers, Barahi Hydropower Public Limited (BHPL) led the gainers, rising 7.46%. At the other extreme, Upper Hewakhola Hydropower Company Limited (UHEWA), dropping 9.09%.
Himalayan Reinsurance Limited (HRL) topped the turnover leaderboard, followed by NRN Infrastructure and Development Limited (NRN) and Nepal Reinsurance Company Limited (NRIC).
All 13 sectoral indices closed in negative territory. The Trading Index took the sharpest hit, falling 3.11%, while the Finance Index dropped 2.26%.
Despite the global sell-off, President Trump remains defiant, reiterating his push to reduce the US trade deficit. “Sometimes you have to take medicine to fix something,” he said on Sunday, signaling no retreat from his tariff stance.
