The Asian markets plunged on Monday, with Japan’s benchmark Nikkei falling over 8% shortly after opening, amid growing concerns of a prolonged US-China trade war and global economic slowdown.
The Nikkei share average, which tracks 225 of Japan’s most valuable companies, dropped below the 33,000 level for the first time since August 2024, with all component stocks trading in the red.
The broader Topix index traded over 7.5% lower, recovering from its steepest losses, while an index of Japanese bank stocks plummeted as much as 17%.
US President Donald Trump’s recent announcement of global reciprocal tariffs sparked fears of a global economic slowdown, with the Nikkei tumbling nearly 9% and the Topix sinking 8% to 2,284.69.
The bank index has been particularly hard hit, plunging as much as 30% over the past three sessions, with recession fears and a stronger yen weighing heavily on Japanese exports and investor sentiment.
The sell-off in Japanese equities has been mirrored in other Asian markets, with the Hang Seng Index plunging 9.28% and the CSI 300 and Shanghai Composite Index falling 4.82% and 4.86%, respectively.
The US tariffs have also impacted tech and auto stocks, with Alibaba, Baidu, and Li Auto Inc. experiencing significant losses, while Softbank Group and Tokyo Electron plunged 11.63% and 10.44%, respectively.