April 7, 2025 — Stock markets across the Asia-Pacific region experienced a brutal selloff on Monday, as growing fears over an economic recession triggered by the United States’ aggressive tariff policy sent shockwaves through global financial systems.
The panic-stricken trading session was marked by sharp declines, trading halts, and emergency interventions by market regulators.
In Hong Kong, the Hang Seng Index suffered a staggering drop of 2,445.19 points, or 10.7%, closing at 20,404.62 in the morning session alone. The losses deepened from a 9.28% decline seen at the market’s opening, reflecting widespread investor anxiety over the deteriorating global trade environment.
The selloff extended to Japan, where the Nikkei 225 plunged 2,843.48 points, or 8.42%, within the first 15 minutes of trading. This marked the lowest intraday level for Japanese markets since October 2023. Trading was temporarily halted after a circuit breaker was triggered in Nikkei futures, highlighting the severity of the downturn. Analysts like Yutaka Miura of Mizuho Securities warned that Japanese markets are unlikely to recover unless U.S. stock markets stabilize, emphasizing how tightly interlinked global sentiment has become.
South Korea’s KOSPI index also fell victim to the turmoil, shedding 103.57 points (4.2%) to 2,361.85 by mid-morning. The Korea Exchange imposed a sidecar order at 9:12 a.m., pausing program buying for five minutes after the KOSPI 200 fell more than 5% — the first such move since August 2024. Analysts attributed the panic to fears surrounding the U.S. “reciprocal tariffs,” which they said are fueling uncertainty and discouraging institutional investment across Asian markets.
Singapore’s Straits Times Index dropped 7.37% (281.84 points) to 3,544.02, as concerns over a potential trade war snowballed. Similar sentiment gripped Indian markets, where the Nifty 50 fell by 3.55%, with the Nifty IT index losing a significant 5.53%. Given that many Indian IT firms heavily rely on the U.S. for revenue, Trump’s tariff measures were seen as particularly damaging.
In Australia, blue-chip stocks crashed by over 6% as the market opened, dragged down by mounting global volatility. Prime Minister Anthony Albanese said the government is “preparing for further uncertain times,” acknowledging that while global markets cannot be controlled, proactive domestic policy could mitigate long-term damage.
The root cause of this market-wide chaos lies in U.S. President Donald Trump’s announcement last Wednesday of a sweeping 10% baseline tariff on imports from all countries, along with steeper rates for selected nations. The tariffs have drawn widespread criticism from economists, foreign leaders, and trade experts, who argue they are a blunt instrument being used to address nuanced trade issues. Markets around the globe are now reacting violently to what many see as the beginning of a prolonged and unpredictable trade conflict.
As tariff tensions mount and investor sentiment deteriorates, markets are expected to remain volatile. For now, Asian markets remain in the grip of fear, with no clear end in sight.