Mon Apr 07 08:04:04 UTC 2025: ## Global Markets Plunge Amidst Tariff Fears

**Tokyo, April 7, 2025** – Global markets experienced a significant downturn today, fueled by ongoing concerns over President Trump’s new tariffs and the potential for a global recession. Japan’s Nikkei share average plummeted to its lowest point in 18 months, closing down 7.8% at 31,136.58 after falling as much as 8.8% earlier in the day. All 225 components of the index finished in negative territory. The broader Topix index mirrored this decline, closing down 7.8% after reaching a low of 9.6%.

The banking sector was particularly hard hit, with the Topix index of banking shares falling 10% after a dramatic 17.3% drop earlier in the session. This sector has lost nearly a quarter of its value in the past three days due to recession fears impacting bond yields and reducing expectations of further interest rate hikes by the Bank of Japan. Nomura Holdings, Mizuho Financial Group, and Mitsubishi UFJ Financial Group experienced double-digit percentage drops.

The chip sector also suffered significant losses, with Renesas, Sumco, and Advantest all seeing double-digit declines.

President Trump, in comments made on Sunday, defended his tariffs as “medicine,” seemingly unfazed by the market turmoil. Since the announcement of the tariffs, the Nikkei has fallen 11.6%, and the U.S. S&P 500 has dropped 10.6%.

Analysts express uncertainty about the extent of the market correction, linking continued volatility to a lack of clarity regarding future trade policies and government responses. However, some believe a market bottom may be near if there are signs of flexibility on trade or announcements of economic support measures.

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