Asian markets plunged on Monday, deepening a global stocks rout triggered by US President Donald Trump’s trade war.

Japan’s benchmark Nikkei fell by more than 8% shortly after opening. The share average, which tracks 225 of the country’s most valuable companies, has fallen below the 33,000 level for the first time since August 2024, according to Reuters. The broader Topix index last traded more than 7.5% lower, recovering from its steepest losses.

Japanese Prime Minister Shigeru Ishiba said on Monday the government will continue to ask President Trump to lower tariffs against Japan, but acknowledged results “won’t come overnight,” according to Reuters.

“As such, the government must take all available means” to cushion the economic blow from US tariffs such as offering funding support for domestic firms and taking measures to protect jobs, Ishiba reportedly told parliament. On Wednesday, Trump imposed a 24% across-the-board tariff on Japan, a defense treaty ally, which is due to take effect later this week.

Asian markets are tracking the worst two-day stretch for Wall Street stocks in five years. US stock futures plunged Sunday evening after two sessions of sell-offs that wiped away over $5.4 trillion in market value.

Global investors have rejected President Trump’s massive tariff regime, some of which went into effect on Saturday morning and even larger tariffs are set to launch on Wednesday. China retaliated fiercely on Friday, imposing a 34% tariff on all US goods, raising fears of an escalating and damaging trade war.

On Sunday evening, Trump told reporters aboard Air Force One that he didn’t intentionally crash markets but declined to predict how markets would trade in the future.

“What’s going to happen with the market? I can’t tell you,” Trump said. “But I can tell you, our country has gotten a lot stronger, and eventually it’ll be a country like no other.”

US stocks are set to open sharply lower Monday, putting the S&P 500 on the precipice of a bear market — a decline of 20% from its peak and an ominous sign for investors and perhaps the broader economy.

South Korea’s Kospi tumbled more than 4.8% shortly after opening. Trading was halted for five minutes when a circuit breaker designed to prevent panic selling was triggered.

Taiwan’s Taiex plummeted more than 9.7% after opening. Circuit breakers were activated for TSMC and Foxconn, two of the island’s best known export powerhouses, after their shares each fell by nearly 10%, according to Reuters.

In Australia, the benchmark ASX 200 index fell as much 6.3% in morning trade, while New Zealand’s NZX 50 lost more 3.5%.

Source: CNN
--Agencies