Japan’s Nikkei 225 plummeted 4.05% to 35,617.56 on Monday, entering correction territory and hitting its lowest level in over six months. The broader Topix index also fell 3.57% to 2,658.73. The sharp declines were driven by fears and uncertainty surrounding upcoming U.S. tariffs.
Other Asian markets followed suit, with South Korea’s benchmark KOSPI shedding 3% to settle at 2,481.12 and the small-cap Kosdaq declining 3.01% to 672.85. Australia’s market dropped 1.74% to close at 7,843.40 ahead of a Reserve Bank of Australia policy meeting where interest rates are expected to remain steady at 4.1%. China’s Shanghai Composite lost 0.71% to 3,887.31, and Hong Kong’s Hang Seng Index decreased by 1.09%.
The Hang Seng Tech Index plunged nearly 3% due to broad sell-offs, with major tech firms experiencing notable declines.
Fearful investors drag Asian markets
Japan’s market saw significant losses among major companies, with Fast Retailing sliding 10.97%, Socionext Inc dropping 8.66%, and SoftBank declining over 5%.
CK Hutchison shares also fell more than 4% as complications arose in its Panama port deal with BlackRock, facing criticism from China. Thailand reassured investors that its stock market and payment services were operating normally despite a powerful earthquake in neighboring Myanmar, which caused significant damage and casualties. In the commodities market, spot gold crossed the $3,100 threshold to hit a record high of $3,106.34 per ounce as investors sought safe havens amidst tariff concerns.
Despite the market downturn, China’s manufacturing activity showed resilience, expanding at its fastest pace in a year, with the official purchasing managers’ index rising to 50.5 in March. Japan’s factory output also grew by 2.5% in February, surpassing expectations and reversing the previous month’s decline, although retail sales growth missed estimates. The market reaction reflects heightened investor anxiety fueled by potential U.S. tariffs and the broader impact on global trade and economic stability.
