Mon Apr 07 04:33:31 UTC 2025: ## Asian Markets Plunge on Trump Tariff Fears; Circuit Breakers Activated

**Hong Kong/Tokyo/Taipei** – Asian stock markets experienced a dramatic sell-off on Monday, April 7th, triggered by escalating fears over US President Trump’s reciprocal tariffs. The widespread panic selling forced multiple exchanges to activate circuit breakers, temporarily halting trading to prevent further declines.

The Nikkei 225 in Japan, after initially falling nearly 9%, ended the day down 6.5%, triggering a 10-minute trading halt when futures fell more than 8%. Similarly, Taiwan’s Taiex index plummeted 9.8% at the open, prompting the activation of its circuit breaker. This marked the lowest point for the Taiex in over a year. To mitigate the volatility, Taiwan’s financial regulator imposed temporary restrictions on short selling until Friday. Despite prior efforts to appease the US, Taiwan still faced a 32% tariff on imports (excluding semiconductors). Key Taiwanese companies, including TSMC and Foxconn, saw double-digit percentage drops.

The sell-off wasn’t limited to Japan and Taiwan. Singapore’s market fell 8.5%, Hong Kong’s Hang Seng Index dropped 9.28%, and South Korea’s Kospi declined 4.8%. Australia’s benchmark index also sank 6%, and Indian markets opened sharply lower, with the Nifty 50 and BSE Sensex experiencing significant losses. US futures contracts also pointed to further declines on Wall Street.

The widespread market reaction reflects growing investor concerns about a potential global recession fueled by the trade war and the anticipation of a possible US interest rate cut as early as May. Circuit breakers, designed to prevent market crashes like the 1987 Black Monday event, were crucial in stemming the immediate panic but did not entirely prevent substantial losses across the region.

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