Japan's Nikkei sinks to 1-1/2-year low as bank shares tumble

Nikkei plunges to lowest level in 1.5 years as tariff fears spark global recession concerns, bank stocks hit hard.

Japan’s Nikkei share average slumped on Monday (April 7, 2025) to the lowest level in 1-1/2 years, with the index of Japanese bank stocks diving more than 17% at one point, as concerns over a tariff-induced global recession continued to rip through markets.

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The Nikkei dropped as much as 8.8% to hit 30,792.74 for the first time since October 2023, before ending the day down 7.8% at 31,136.58. All 225 component stocks of the index finished in the red.

The broader Topix sank as much as 9.6% before closing down 7.8%.

Speaking on Sunday (April 6) aboard Air Force One, U.S. President Donald Trump characterised his latest round of sweeping tariffs as “medicine”, and signalled a willingness to accept the market rout.

Since Mr. Trump revealed the more-aggressive-then-anticipated levies last week, the Nikkei has tumbled 11.6% and the U.S. S&P 500 has dropped 10.6%.

“It’s extremely difficult to judge how far this stock market correction will run [but] as long as there exists a lack of clarity around tariffs and each country’s response, the market will remain heavy,” said Maki Sawada, an equities strategist at Nomura Securities.