Singapore saw a sharp decline in Singapore Airlines’ stock prices on Tuesday, a day after the carrier announced a staggering 59% drop in its first-quarter earnings. The company’s shares fell by more than 8%, marking their largest single-day decline in almost a year, according to data from LSEG. As the trading session progressed, the shares were down 7.11%.

For the quarter ending June 30, Singapore Airlines reported a net profit of 186 million Singapore dollars, equivalent to approximately $144 million. The airline attributed this significant drop in earnings to decreased interest income and losses from its associated businesses.

In a different part of the Asian market, shares of baby product companies in China surged in response to a new childcare subsidy initiative aimed at addressing declining fertility rates in the country. Announced by Chinese authorities, the program will provide an annual childcare allowance of 3,600 yuan, about $501, for each child born starting January 1, 2025, until they reach the age of three.

Following the announcement, shares of Beingmate, a maker of baby food and formula, increased by over 9%, while shares of China Feihe, which specializes in infant formula, rose as much as 8.3% before settling down.

Meanwhile, the broader Asian markets began the day lower, with Japan’s Nikkei 225 index falling 0.61%, and the Topix index losing 0.76%. South Korea’s Kospi declined by 1.09%, while the small-cap Kosdaq experienced a 0.88% drop. Australia’s S&P/ASX 200 also faced challenges, closing 0.42% lower.

Futures trading indicated a tough day ahead for Asian markets. In Japan, the futures market pointed to a lower opening for the Nikkei 225, with indexes trading significantly below their previous close. Similarly, futures for the Hang Seng Index in Hong Kong indicated a weaker open compared to the last trading session.

In the United States, the mood was relatively flat as the S&P 500 closed nearly unchanged on Monday. Investors appeared unimpressed by a recent trade deal between the U.S. and the European Union, with the S&P 500 inching up by only 0.02% to finish at 6,389.77. The Nasdaq Composite fared slightly better, gaining 0.33%, while the Dow Jones Industrial Average slipped 64.36 points, or 0.14%.

Adding to the economic headlines, President Donald Trump announced plans for a global baseline tariff expected to range from 15% to 20% on imports from nations lacking trade agreements with the United States. Trump indicated that his administration seeks to formalize these tariffs by August 1, up from an initial proposed rate of 10%.

This series of economic shifts and announcements highlights the evolving landscape in both Asian and U.S. markets, influencing investor sentiment as they navigate a period marked by uncertainty and recalibrations in various sectors.