Asian markets plunged on Monday, intensifying a global stock market rout triggered by U.S. President Donald Trump’s sweeping tariff measures.
Japan’s benchmark Nikkei 225 dropped more than 8% shortly after the market opened, falling below the 33,000 level for the first time since August 2024, according to Reuters. The broader Topix index was last reported over 7.5% lower, recovering slightly from its steepest losses earlier in the day.
Japanese Prime Minister Shigeru Ishiba addressed parliament on Monday, stating that his government will continue to urge President Trump to reduce tariffs on Japan. However, he acknowledged that “results won’t come overnight.”
“As such, the government must take all available means” to cushion the economic blow from U.S. tariffs, including financial support for domestic firms and job protection measures, Ishiba said.
The U.S. recently imposed a 24% across-the-board tariff on Japanese goods, despite the two countries being long-time defense allies. The tariffs, announced Wednesday, are set to take effect later this week.
The market turmoil comes as Asian markets react to Wall Street’s worst two-day performance in five years. U.S. stock futures plunged on Sunday evening after back-to-back sell-offs erased more than $5.4 trillion in market value.
Global investors have rejected Trump’s expansive tariff regime, parts of which took effect Saturday. Even broader tariffs are expected to be implemented on Wednesday. In response, China retaliated with a 34% tariff on all U.S. goods, escalating fears of a prolonged and damaging trade war.
Speaking to reporters aboard Air Force One on Sunday evening, President Trump said he did not intentionally cause the market crash but declined to make predictions about market performance.
“What’s going to happen with the market? I can’t tell you,” he said. “But I can tell you, our country has gotten a lot stronger, and eventually it’ll be a country like no other.”
U.S. stocks are poised to open sharply lower on Monday, placing the S&P 500 on the brink of a bear market—a 20% decline from its most recent peak—raising concerns about broader economic fallout.
Elsewhere in Asia, South Korea’s Kospi index plunged more than 4.8% shortly after the opening bell, triggering a five-minute trading halt under circuit breaker rules designed to curb panic selling.
Taiwan’s Taiex index tumbled more than 9.7%. Trading was briefly halted for TSMC and Foxconn—two of the island’s most prominent exporters—after their shares each dropped nearly 10%, Reuters reported.
Australia’s ASX 200 fell as much as 6.3% in morning trading, while New Zealand’s NZX 50 index slid more than 3.5%.
Source: CNN
