Asian equities plummeted today, extending a global rout in financial markets as the fallout from the US tariffs deepened.
Japan’s Nikkei 225 slumped over 8% shortly after the open, sliding below the 33,000 mark for the first time since August 2024.
The broader Topix index fell more than 7.5%, briefly touching its steepest losses before modestly recovering.
The sell-off came in the wake of the Trump administration’s 24% across-the-board tariff on Japanese imports, which is set to take effect later this week.
Japan prepares response
Japanese Prime Minister Shigeru Ishiba told parliament on Monday the government would continue efforts to engage Washington while preparing measures to buffer domestic firms from the economic impact.
The turmoil in Asia follows the worst two-day performance on Wall Street in five years.
US stock futures tumbled on Sunday night after losses across major indices last week erased more than US$5.4 trillion in market capitalisation.
With further tariff escalations looming, global markets are bracing for continued volatility.
China’s response has compounded the market fears of a prolonged and escalating trade war, with Beijing imposing a 34% tariff on all American goods on Friday.
The Shanghai Composite opened down 4.5% and was last down 6.7%, while the blue-chip CSI300 index fell 7.5%.
In Hong Kong, the Hang Seng dropped more than 9% at the open.
South Korea’s Kospi plunged 4.8%, triggering a brief trading halt as a circuit breaker was activated to curb panic selling.
In Taiwan, the Taiex index nosedived over 9.7%, with major exporters including Taiwan Semiconductor Manufacturing Company (TSMC) and Foxconn both falling near 10%, halting trading under local exchange rules.
Over here in the antipodes, we’ve felt the ripples – the ASX 200 fell as much as 6.3% during morning trade, while New Zealand’s NZX 50 dropped more than 3.5%.
And of course, US markets are on the brink of entering bear territory as a direct result of a president whose voters claimed that they were concerned about the economy and the price of eggs.