Japan Financial Stocks Index Plummets Over 12%, TOPIX Falls 2% and Nikkei 7.8% Amid Market Declines

Japan's financial markets experienced significant declines on April 7, 2025, with the TOPIX banking index falling by 2.3% and the broader TOPIX index dropping 2% to reach an eight-month low. The Japan Financial Stocks Index plummeted more than 12%, marking the second largest crash in its history. Additionally, the Nikkei index fell by 7.8% at market close. The banking sector was particularly hard hit, with reports indicating that Japanese banking stocks declined by 17%. The downturn extended to other Asian markets, with Hong Kong's stock index experiencing a drop of 12.4%, the worst session since 1997. European markets also showed signs of potential losses, with pre-opening orders indicating declines of up to 5%. Overall, the day reflected a widespread sell-off across various stock exchanges in Asia and anticipated further losses in Europe.