Asian Markets Plunge as Japan's Nikkei Drops Nearly 8% Amid Wall Street Sell-Off

On April 7, 2025, Asian stock markets experienced a severe downturn following a major Wall Street sell-off triggered by escalating U.S.-China trade tensions. U.S. President Donald Trump's announcement of increased tariffs, met with immediate retaliatory measures from Beijing, created widespread investor anxiety. Japan’s Nikkei 225 plunged nearly 8%, while other key indices such as Hong Kong's Hang Seng and China's Shanghai Composite also registered sharp declines.

The turmoil reverberated through the region with markets in South Korea and Taiwan suffering substantial losses. In addition to falling stock values, the pressure was felt in other asset classes; oil prices declined, and the Japanese yen strengthened as investors sought a safe haven. Analysts remain cautious, warning that continued uncertainty over trade policies could further destabilize global markets in the coming days.