TOKYO, – Japan’s Nikkei share average tumbled nearly 9% early on Monday, while an index of Japanese bank stocks plunged as much as 17%, as concerns over a tariff-induced global recession continued to rip through markets.

The Nikkei dropped as much as 8.8% to hit 30,792.74 for the first time since October 2023, before entering the midday trading recess down 6.5% at 31,591.84.

All 225 component stocks of the index were in the red.

The broader Topix sank as much as 9.6% before ending the morning session down 6.5%.

Speaking on Sunday aboard Air Force One, U.S. President Donald Trump characterized his latest round of sweeping tariffs as “medicine” aimed to rectify trade imbalances, and signalled a willingness to accept the market rout that followed.

Since Trump revealed the more aggressive-then-anticipated levies last week, the Nikkei has tumbled 11.6% and the U.S. S&P 500 has dropped 10.6%.

“It’s extremely difficult to judge how far this stock market correction will run as long as there exists a lack of clarity of tariffs and each country’s response, the market will remain heavy,” said Maki Sawada, an equities strategist at Nomura Securities.

At the same time, “the market currently is only pricing in bad news”, so if there are signs of flexibility on tariffs or the announcement of economic support measures, “it’s highly likely we’ll see a bottom form in the market,” Sawada said.

A topix index of banking shares slumped as much as 17.3% on Monday, before recovering slightly to enter the midday recess down 9.8%.

Banks have borne the brunt of the sell-off in Japanese equities, losing nearly a quarter of their combined value over the past three sessions, as recession worries compressed bond yields and push out bets for further interest rate hikes by the Bank of Japan.

“This is a sell-anything that has made money move,” with banks at the forefront of that, said Rikki Malik, a portfolio manager at Springboard Capital.

However, “I think we are close to capitulation and will see a bounce very soon.”

Resona Holdings was the worst-performing lender on Monday, with a 12.2% slump. Shares of Mizuho dropped 11.3% and Nomura slid 10.9%.

Several chip-sector stocks also saw heavy selling, with chipmaker Renesas dropping 14.8% and silicon manufacturer Sumco sliding 14.4%. Heavyweight chip-making equipment manufacturer Tokyo Electron sank 8.6%.

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