Asia markets slumped as Trump's tariffs kick in. Treasuries are selling off.

• Asia shares and US futures were volatile after US President Trump's new tariffs kicked off.
• Treasuries sold off as investors dashed for the safety of cash.
• Trump's new tariffs have sparked global market volatility and economic concerns.

Asian shares and Treasuries sold off in a volatile trading day after US President Donald Trump's sweeping tariffs came into effect on Wednesday.

China's stock markets were relatively stable, by contrast, after the country's central bank and state-owned firms pledged support.

Here's where major Asia indexes stand at the end of the trading day:

• Japan's Nikkei 225: -3.9%
• South Korea's Kospi: -1.7%
• Australia's ASX 200: -1.8%
• Hang Seng Index: +0.7%.
• China's CSI 300: +1%

US futures reversed earlier losses to tick higher:

• S&P 500 futures: +0.3% at 5,035.25 at 3:54 a.m. ET
• Dow Jones futures: +0.2% at 37,925
• Nasdaq-100 futures: +0.6% at 17,353

Oil futures tanked to four-year lows:

• US benchmark West Texas Intermediate crude futures: 3.1% lower at $57.73 a barrel at 5:53 a.m. ET
• International benchmark Brent futures: 3% lower at $60.91 a barrel

Bond rout on the 'sell America' trade

Treasuries sold off as investors dashed for the safety of cash. There are also questions about the role of the King Dollar amid the US's new tariff regime.

"Alarmingly, US Treasury markets are also experiencing an incredibly aggressive selloff as we go to press, adding to the evidence that they're losing their traditional haven status," wrote analysts at Deutsche Bank in a Wednesday note.

The bond rout comes on the back of a weak auction for three-year Treasuries on Tuesday.

"Treasuries were not trading great into the auction, but the poor outcome gave them another kick. The important thing about the 3yr is it's a line that global central banks tend to lap up," wrote analysts at ING in a Tuesday note.

"This seemingly 'sell America' trade, is one that's now dominating the rising recession risk theme that typically would have pushed yields down," the ING analysts wrote.

The US dollar — typically a safe haven as well — fell against a basket of major currencies, including the Japanese yen. Spot gold was up.

'No asset class has been spared'

The losses on Wednesday follow a wild overnight trading session on Wall Street, during which stocks opened up only to erase big gains and ended lower.

The wild swings in the markets point to persistent volatility after US President Donald Trump shook up the world's global trading system with new sweeping tariffs.

"There's no sign yet that the market is managing to successfully find a bottom, and it feels like no asset class has been spared as investors continue to price in a growing probability of a US recession," wrote Deutsche Bank's analysts.

China — which has retaliated against Trump's tariffs — vowed on Tuesday that it will not back down and will "fight to the end." The world's second-largest economy faces 104% tariffs from the US.

"We caution that trade tensions and geopolitical risks are likely to remain elevated over the coming quarters and keep investors on the sidelines," analysts at CreditSights wrote in a Wednesday note.

Investors continue to worry over the impact of Trump's tariffs, which are expected to fuel inflation and slow investment in the US.

"Historically, the effects of a slowing US economy have spilled over to the rest of the world, weighing on global growth and strengthening the dollar against most currencies, with the exception of traditional havens such as the Japanese yen and Swiss franc," wrote strategists at Lombard Odier, a Swiss private bank, in a Tuesday note.