FX.co ★ Japanese Shares Sink 8% Amid Tariff-Driven Rout

The Nikkei 225 Index experienced a significant downturn, dropping by 7.8% to settle at 31,136, while the broader Topix Index also declined by 7.8% to reach 2,289 on Monday. This marks the lowest closing levels seen since October 2023. The downturn was exacerbated by a global selloff, triggered by the trade war initiated by US President Donald Trump, which heightened fears of a global recession. On Sunday evening, President Trump stated he is not intentionally causing the current market downturn, though he remarked, "sometimes you have to take medicine to fix something." Despite pushback from China, the Trump administration remains firm on implementing reciprocal tariffs, with other major trading partners expected to respond similarly. Leading the declines were Japanese banks, with substantial losses for Mitsubishi UFJ (-10.4%), Sumitomo Mitsui (-8.2%), and Mizuho Financial (-10.7%). Other major index players also suffered, including Mitsubishi Heavy (-12.8%), Toyota Motor (-5.9%), Disco Corp (-14.6%), Nintendo (-7.9%), and Advantest (-11%).