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Date: 07-apr-2025
On April 7, 2025, Japan’s Nikkei 225 index suffered a dramatic plunge, falling as much as 9% in early trading before settling at a 6.5% loss by the end of the morning session. This marks the sharpest drop in over 15 months and reflects rising concerns over U.S. economic policy and its global ripple effects.
The crash was directly linked to a surprise announcement from the U.S. government imposing a 24% tariff on a wide range of Japanese exports. The move is part of a larger protectionist trade strategy, igniting fears of an extended economic conflict between two of the world’s largest economies.
The broader Topix index mirrored the plunge, losing 6.5% during the same session. Banking stocks were among the hardest hit, with an index tracking Japanese banks dropping as much as 17%. Financial giants such as Mizuho Financial Group and Mitsubishi UFJ Financial Group recorded major intraday losses.
Japan was not alone in the market fallout. South Korea’s Kospi index declined nearly 5%, while Australia's ASX200 dropped over 6% amid the same fears. Investors across the region responded to growing concerns about a potential global recession triggered by trade policy shocks and geopolitical instability.
Japanese financial authorities have not yet intervened directly but confirmed they are monitoring the situation closely. Economists suggest that a continued slide in market confidence could force the Bank of Japan to consider emergency stimulus or other intervention strategies.
With trade tensions escalating rapidly, the path forward remains uncertain. Markets are likely to remain volatile as investors await potential negotiations or conciliatory moves between Washington and Tokyo.
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Date: 07-Apr-2025
The European Union is preparing retaliatory tariffs on $28 billion in U.S. goods, including steel, aluminum, and cars, following new U.S. trade measures.
Date: 07-Apr-2025
The European Union is preparing retaliatory tariffs on $28 billion in U.S. goods, including steel, aluminum, and cars, following new U.S. trade measures.
