Nikkei plunges 9%, Hang Seng off 8%, Nasdaq Futures sink over 5% as markets reel from historic sell-off
It began with a whisper — a sharp pullback in U.S. futures late Sunday. By dawn Monday, it had become a roar.
Stock markets across the globe plunged into freefall in the early hours of April 7, 2025, triggering circuit breakers, halting trades, and resurrecting memories of the worst days of 2008. In Tokyo, traders watched the Nikkei 225 crater nearly 9% within minutes of the opening bell. In Hong Kong, the Hang Seng dropped 8%, while China’s CSI300 fell 4.5%. Singapore and Australia didn’t escape the carnage either — both plunged more than 6% in early trading.
The cause? A shockwave of investor panic sparked by U.S. President Donald Trump’s sweeping tariffs announced last week — a radical policy that has wiped out over $6 trillion in global equity value in less than five trading sessions.
“This is Black Monday 2.0,” said Jim Cramer, host of CNBC’s Mad Money, who had warned of an imminent crash just 24 hours earlier. “It’s systemic. It’s global. And we’re not at the bottom yet.”
Tokyo Meltdown: Nikkei Plunges, Futures Freeze
At 9:01 a.m. local time, the Tokyo Stock Exchange opened to chaos. Within 10 minutes, the Nikkei had tumbled 8.7%, prompting automatic volatility halts on several blue-chip stocks. Bank shares were hit hardest — a Japanese banking sector index crashed nearly 17%, with Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho Financial down double digits.
The Topix index, which tracks broader Japanese equities, was off 8% by 9:30 a.m., its worst performance since the 2011 Fukushima disaster. The pain was so acute that trading in Nikkei futures was suspended due to circuit breakers — a last-resort measure triggered when losses exceed regulatory thresholds.
“Investors are looking at another lost decade,” said Reiko Hayashi, chief strategist at Nomura Securities. “Trump’s tariffs are not just economic warfare. They’ve shattered global confidence.”
China, Hong Kong: Tech Giants Crushed
The shockwaves rippled across the East China Sea and into Shanghai and Hong Kong, where the Hang Seng Index dropped 8%, and the CSI300 shed 4.5%. Tech titans Alibaba and Tencent fell over 8% each. Tencent’s loss alone erased $62 billion in market cap — more than the GDP of Luxembourg.
Beijing, which has been locked in a renewed trade standoff with Washington, moved swiftly to calm the storm. The People’s Bank of China injected liquidity into overnight markets and hinted at rate cuts. But analysts said it was “far too little, far too late.”
“The tariff wall that Trump has erected is not just against China — it’s against the entire globalized supply chain,” said Wang Jian, chief economist at China Asset Capital. “And investors are realizing just how fragile that system is.”
Singapore, Australia: ‘Shock and Awe’ in Southeast Asia
In Singapore, the Straits Times Index dropped over 7% before noon, its worst intraday performance in nearly two decades. DBS Bank, OCBC, and UOB were down sharply. Traders called it “shock and awe” — a reference to the rapid-fire losses and algorithmic selling that accelerated the crash.
Australia’s S&P/ASX 200 tumbled 6.07% at the open, dragging mining giants like BHP and Rio Tinto down in its wake. Analysts warned that the selloff could intensify if U.S. markets continue their downward spiral.
“It’s a synchronized crash,” said Michael Hartnett, chief investment strategist at Bank of America. “No safe havens. Not even gold. Just fear.”
Futures Flash Red: Wall Street Braces
Even before Asia opened, U.S. futures had already painted the writing on the wall. At 10:30 p.m. EST Sunday, Dow Futures were down 1,500 points, or 3.5%, while S&P 500 Futures fell 4.2%. Nasdaq Futures dropped 5.3%, nearing the threshold for a limit-down halt.
The Russell 2000, which tracks smaller-cap American firms, was down more than 7%, reflecting growing concerns that domestic businesses — many of whom rely on global supply chains — will be crushed by retaliatory tariffs and higher import costs.
The selloff followed last week’s disastrous two-day stretch, when U.S. markets lost $5 trillion in value, marking one of the sharpest corrections in financial history.
‘We Have to Take the Medicine’: Trump’s Defense
As global markets hemorrhaged wealth, President Trump remained defiant.
“I don’t want anything to go down,” he said at a Sunday press conference. “But sometimes, you have to take medicine to fix something. We’re going to become a wealthy nation again — wealthy like never before.”
Trump’s sweeping tariffs — a baseline 10% on all imports with additional levies for “non-cooperative” trading partners — have already drawn fierce criticism from allies and triggered tit-for-tat measures from China, the EU, and Canada.
But inside the White House, aides say the president sees market panic as a temporary sacrifice. “He believes he’s reshaping the global economy,” said one senior official. “And like any surgery, there’s going to be blood.”
What’s Next: Circuit Breakers, Contagion, and a Fed on Standby
With markets now in freefall, all eyes turn to Washington — and specifically the Federal Reserve. Fed Chair Jerome Powell is expected to hold an emergency meeting Monday evening. Analysts speculate a rate cut could be on the table, along with potential interventions in credit markets.
Meanwhile, European markets are poised to open deep in the red. German DAX futures were down 4.8% at press time, while the UK’s FTSE was tracking a 5.1% drop.
“This isn’t just a correction. This is contagion,” said Liz Ann Sonders, chief market strategist at Charles Schwab. “And unless there’s coordinated global action, it’s going to get worse before it gets better.”
