Yen, Asian bonds and gold rise as trade war prompts 'flight to quality'

Tariff uncertainty leads to 'deterioration in risk appetite,' says State Street

Following U.S. President Donald Trump's tariff reveal last week, as well as China's retaliatory measures, the prices of low-risk assets have climbed. (Source photos by Reuters and Akira Kodaka)

JADA NAGUMO, LISA KIM and SAYAN CHAKRABORTY

April 9, 2025 10:57 JST

Updated on April 9, 2025 14:05 JST

TOKYO/BENGALURU -- The intensifying global trade war is pushing investors to seek out traditional safe-haven assets, including gold and high-quality sovereign bonds, as rising uncertainty over the economic impact of U.S. tariffs induces a risk asset sell-off.

On Wednesday, Japan's benchmark Nikkei Stock Average slid over 5% as U.S. President Donald Trump's reciprocal tariffs kicked in, including a 104% rate on Chine imports.