Stocks in Asia continued to decline as President Donald Trump indicated intentions to enforce tariffs of 104% on Chinese goods. This led to a significant drop in oil prices to four-year lows due to concerns about a global recession impacting financial markets.

The U.S. dollar weakened against safe-haven currencies, while the offshore yuan reached a record low of 7.4287 per dollar. Expectations of interest rate cuts surged in Asian markets, with Fed fund futures suggesting around 115 basis points of cuts for the year.

Washington confirmed the implementation of 104% tariffs on Chinese imports, causing volatility in financial markets amid fears of an extended trade war between the world's top two economies.

The S&P 500 experienced a major turnaround with one of the largest reversals in decades, resulting in substantial losses. Stock markets globally were affected, with futures in Asia and Europe declining.

Chinese stocks and Hong Kong's Hang Seng index dropped, along with MSCI's Asia-Pacific shares outside Japan. President Trump accused China of currency manipulation but expressed hope for a potential deal.

The situation between the U.S. and China was described as a high-stakes game, with uncertainties about the trade war's impact on China's economy. The Chinese yuan depreciated, with attention on the People's Bank of China's mid-point fixing.

JPMorgan analysts warned that the escalating tariffs could trigger a global recession, imposing a significant tax increase on U.S. households and businesses. They highlighted the potential use of the currency by Chinese policymakers to mitigate the situation.