Stocks in Asia slide on Trump tariff concerns

Summary

Marketplace Morning Report: Stocks in Asia Slide on Trump Tariff Concerns

Release Date: March 11, 2025

In this episode of the Marketplace Morning Report, host Liana Byrne delves into the latest developments affecting global financial markets, geopolitical tensions, advancements in artificial intelligence, a significant cyber heist in the cryptocurrency sector, and legislative changes aimed at revitalizing rural nightlife in France. Below is a comprehensive summary of the key discussions and insights from the episode.

---

1. Asian Stock Markets Slide Amid Trump Tariff Concerns

Timestamp: 01:00 – 03:11

Liana Byrne opens the report by highlighting the downturn in Asian financial markets, even though it overlapped with morning hours in the West. Major economies such as Japan, South Korea, Australia, and China experienced a notable decline of approximately 3% before seeing slight recoveries. The primary catalyst for this slide is investor anxiety over U.S. tariff policies under President Trump, which are perceived to have far-reaching implications for the global economy.

Insights from Mariko Oi (BBC World Service):

• Impact of U.S. Tariffs: "Many of [the factors] are definitely concerned about this impact of tariffs on the US Economy, which then of course has an impact on the rest of the world." (01:37)

• Additional Factors: Beyond tariffs, issues such as China's economic slowdown and revised GDP data in Japan are contributing to market instability. Furthermore, impending aluminum and steel tariffs set to take effect "tomorrow" are heightening fears among Asian investors (02:32).

• Federal Reserve's Role: Mariko Oi acknowledges that developments regarding the Federal Reserve's potential interest rate cuts are being closely monitored. A rate cut could influence the U.S. dollar's value, thereby affecting currencies in emerging Asian markets. However, the prevailing uncertainty remains a significant deterrent for investors (02:40).

The segment underscores the interconnectedness of global economies and the ripple effects of U.S. domestic policies on international markets.

---

2. China's Ambitious AI Goals Amid Global Tensions

Timestamp: 03:11 – 04:04

Shifting focus to technological advancements, Liana Byrne reports on China's strategic push to dominate the artificial intelligence (AI) sector. During the final day of the National People's Congress, President Xi Jinping declared aspirations for China to become the global leader in AI by the decade's end.

Highlights from Laura Bicker (BBC World Service):

• AI Achievements: Speeches celebrated successes like the Chinese AI startup Deepseek, which introduced a chatbot in January competing with U.S. counterparts, "stunning experts in Silicon Valley." (03:33)

• U.S. Countermeasures: In response, the U.S. has intensified export controls on advanced chips and added several Chinese firms to a trade blacklist, citing concerns over AI's potential military applications. Chinese Foreign Minister Wan Yi labeled these measures as "unjustified external suppression," asserting that "when there are blockades, there are breakthroughs." (03:38 – 03:54)

This segment highlights the strategic competition between the U.S. and China in the AI domain, reflecting broader geopolitical tensions.

---

3. Record-Breaking Cyber Heist Hits Cryptocurrency Exchange Bybit

Timestamp: 04:04 – 07:21

The report transitions to a dramatic financial security breach involving the cryptocurrency exchange Bybit. Hackers, believed to be affiliated with North Korea's Lazarus Group, executed a cyber heist that successfully cashed out at least $300 million from a total robbery of $1.5 billion—the largest in the cryptocurrency industry's history.

Key Developments:

• Bybit's CEO Response: Ben Zhao, CEO and founder of Bybit, described the attack as "probably the biggest single theft in any industry ever," emphasizing the unprecedented scale of the $1.5 billion loss within seconds (05:10).

• Attribution to North Korea: Following the breach, suspicions quickly pointed towards North Korea. Dr. Beverly McCann from Darktrace noted that North Korea has amassed billions through cyber hacks, primarily to "fund their military missile programs" (05:38 – 05:41).

• Mechanism of the Hack: The cybercriminals exploited Bybit's "SafeWallet," a system used to transfer cryptocurrencies from secure offline cold wallets to accessible hot wallets. By secretly altering the transfer address during a routine mega transfer of Ethereum coins, the hackers redirected the funds before detection (05:06 – 05:10).

• Aftermath and Investigation: Though Bybit assured customers that no funds were lost and replenished their reserves, they remain vigilant in combating the breach. Crypto investigators from Elliptic are tracking the hackers' movements through the transparent blockchain, revealing complex layers intended to obfuscate the money trail and hinder tracing efforts (06:10 – 07:21).

This incident underscores the vulnerabilities within the cryptocurrency ecosystem and the persistent threats posed by state-sponsored cybercriminals.

---

4. France Eases Licensing Laws to Revitalize Rural Nightlife

Timestamp: 07:21 – 07:47

Concluding the episode, Liana Byrne reports on legislative changes in France aimed at boosting rural nightlife. French lawmakers have passed a bill that relaxes licensing regulations, enabling more village bars to serve spirits in addition to beer and wine. This move is intended to stimulate economic activity and enhance the social vibrancy of rural communities.

---

5. Spotlight on Personal Finance Education

Timestamp: 07:47 – 08:03

The episode wraps up with a promotion for "Financially Inclined," a Marketplace podcast hosted by Janelie Espinal. In light of the discussed economic uncertainties and declining consumer confidence—the sharpest monthly dip since 2021—Espinal emphasizes the importance of understanding personal finance. The podcast offers practical advice on topics like negotiating job offers, managing money, entrepreneurship, and handling student loans, empowering listeners to build the financial futures they aspire to.

---

Notable Quotes:

• Mariko Oi: "Many of them are definitely concerned about this impact of tariffs on the US Economy, which then of course has an impact on the rest of the world." (01:37)

• Ben Zhao: "In fact, it's probably the biggest single theft in any industry ever. $1.5 billion gone in seconds." (05:10)

• Wan Yi: "When there are blockades, there are breakthroughs." (03:54)

---

This episode of the Marketplace Morning Report provides a thorough analysis of significant economic and technological developments shaping today's global landscape, offering listeners valuable insights into market dynamics, international relations, cybersecurity threats, and legislative reforms.

Transcript

[Dana Farber Scientist]

Life sustains itself by cell division. So does cancer. Breast cancer cells multiply faster because of CDK4.6 proteins. But what if we could block those proteins and stop runaway cell division? To that end, Dana Farber scientists laid the foundation for CDK46 inhibitors, new drugs that are increasing the survival rate for many advanced breast cancers. Dana Farber's momentum of discovery keeps finding new ways to outmaneuver cancer. Learn [e-mail] Everywhere Lisa supports this Marketplace.

[Lisa]

Podcast Using the highest quality materials, Lisa meticulously designs and assembles their mattresses in America for exceptional comfort and support. Delivery is free, returns are easy, and you have 100 nights to try out your mattress in the comfort of your home. Marketplace listeners can get an extra $50 off their purchase with code marketplace. Learn more at leesa.com Asian stocks slide.

[Liana Byrne]

As the effects of Trump's tariffs Dig in. Live in the UK this is the Marketplace Morning Report from the BBC World Service. I'm Liana Byrne. Good morning. Now, it might be morning for us, but over in Asia, financial markets are closed and it was a rough day for them. The main markets in Japan, South Korea, Australia and China all opened down by around 3% before recovering slightly. It's all because investors are worried about what's going on stateside. The BBC's Mariko Oi has been following this for us. Hello.

[Mariko Oi]

Hello.

[Liana Byrne]

So how much of this is tied to US Policies like tariffs versus broader global trends?

[Mariko Oi]

There are many factors involved when investors decide to sell stocks. I think it's fair to say that many of them are definitely concerned about this impact of tariffs on the US Economy, which then of course has an impact on the rest of the world. Of course, there are other issues like China's slowdown that we've been talking about. Also, you know, Japan's GDP data was revised and maybe that affected the Japanese stock market today. And also for many Asian investors, the latest tariffs that are due to kick in tomorrow. So that's the aluminium and steel tariffs that's also worrying many because there have been various reports suggesting that many America's trading partners, so namely Australia, Japan and so on, they've been negotiating with Washington trying to get an exemption from that, but so far no one has managed to get that.

[Liana Byrne]

Are they looking ahead to what the Federal Reserve might do as well in terms of cutting interest rates? Could that actually help emerging markets in Asia?

[Mariko Oi]

Yes, I think that's something that they are definitely watching. And as you say, if the Fed was to cut rates, that basically has an impact on the value of the US Dollar, which of course has an impact on various local currencies of emerging markets as well. But I think as for now, it's really the uncertainty. You know, it's such a cliche, but, you know, investors market just don't like uncertainty. And that's exactly what they've been getting for the past couple of weeks.

[Liana Byrne]

The BBC's Mariko Oi, thank you so much for joining us in Marketplace.

[Mariko Oi]

Thank you.

[Liana Byrne]

Meanwhile, in China, its governing Communist Party has been celebrating all the progress the country has made with artificial intelligence. It's the final day of the National People's Congress, Beijing's biggest annual political event. President Xi Jinping says he wants China to become the global leader in AI by the end of the decade. The BBC's Laura Bicker reports from Beijing.

[Laura Bicker]

Speeches have highlighted the success of the Chinese AI startup Deepseek, which launched a chatbot compatible to its US Rivals in January. Stunning experts in Silicon Valley. Washington has tightened export controls for advanced chips and placed more Chinese firms on a trade blacklist as concerns grow over how AI could be used to support Beijing's military. But the foreign minister, Wan Yi, described this as as unjustified external suppression and said that when there are blockades, there are breakthroughs.

[Liana Byrne]

Laura Bicker there. Now, let's do the numbers. Stock markets are steadying this morning after a dramatic day. Japan's Nikkei 2 to 5 closed down 6.10 of a percent, but the Hang Seng closed flat. Europe's Stoxx 600 is down 1.10 of a percent. And Germany's Dax is up 7.10 of a percent. Now to a massive cyber heist. Hackers thought to be working for North Korea have successfully cashed out at least $300 million of their record breaking $1.5 billion crypto raid. The attack against company Bybit has been linked to the Lazarus Group, a notorious hacking collective accused of orchestrating a series of major cyber thefts allegedly to bankroll North Korea's weapons program. The BBC's Joe Tidey reports. Are we live?

[Ben Zhao]

This is Ben Zhao, CEO and founder of the Bybit cryptocurrency Exchange. He's about to make an announcement that every CEO dreads.

[Mariko Oi]

About two hours ago, Bybit experienced a hack.

[Liana Byrne]

As far as we know, this could be the largest hack in the history of our industry.

[Ben Zhao]

In fact, it's probably the biggest single theft in any industry ever. $1.5 billion gone in seconds. And even in the early hours after the hack, fingers began immediately pointing in one direction. North Korea. The impoverished country has One of the most advanced cyberteams in the world, Dr. Beverly McCann from Darktrace, says North Korea has made billions from hacks.

[Laura Bicker]

They use it to fund their military missile programs.

[Ben Zhao]

But the Bybit heist dwarfs all previous financial hacks. So how was it pulled off? Like all crypto exchanges, Bybit has a float of crypto coins ready to be sold and swapped in so called hot wallets. When the hot wallets are running low, more crypto coins are taken out of huge reserve pots called cold wallets that are kept super secure and offline, therefore safe from hackers. But the cybercriminals targeted a company called SafeWallet that Bybit uses to transfer coins from its reserve cold wallets to to its hot wallets. Everything looked normal for Bybit as they set up the mega transfer of Ethereum coins to the usual place. But the hackers had secretly changed the address that the coins were being sent to. By the time they realized it was too late. Bybit insisted that no customers would lose money. They've now replenished their reserves. But the company is, in its words, waging war on the hackers. Crypto investigators Elliptic are experts at charting the movements of criminal crypto funds. Every transaction is published on a public blockchain. Dr. Tom Robinson and his team have enormous, ever changing graphs showing the web of transactions made by the hackers. And so we're seeing the funds split up and sent out and layered. And what they're really trying to do here is confuse the money trail, make it more difficult, or to slow down the tracing of these funds. For years now, the US and allies have accused the country of orchestrating cybercrime. Names and photos of alleged North Korean hackers have been added to a cyber most wanted list. But unless they leave the country, the chances of them being arrested are very slim.

[Liana Byrne]

Joe Tidy reporting. And finally, French lawmakers have passed a bill to boost rural nightlife by making it easier to open village bars. The new rules relax licensing laws, allowing more venues to serve spirits where many could previously only offer beer and wine. I'm Liana Byrne with the Marketplace morning report from the BBC World Service.

[Janelie Espinal]

Consumer confidence had its sharpest monthly decline since 2021, which means we're all in our feels about money. And while uncertainty is the only constant these days, it's also a great reason to get serious about understanding personal finance.

[Liana Byrne]

Janelle.

[Janelie Espinal]

I'm Janelie Espinal, host of Financially Inclined, a podcast from Marketplace that makes learning about money simple. Learn about practical skills like negotiating job offers, dealing with money, and friendship and love, entrepreneurship and student loans. Get serious about your money and build a life you've always dreamed of. Listen to financially inclined wherever you get your podcasts.