Japanese stocks post biggest weekly drop in five years

Japanese stocks fell on Friday to their lowest levels since last August, recording their biggest weekly decline in five years, as fears of a global recession grew following the sweeping tariffs announced by US President Donald Trump.

The Nikkei index fell 2.75% at the close, down 9% for the week, its biggest weekly decline since March 2020. It also reached its lowest level since early August during the session.

The index has fallen 20% from its July peak, meaning it is in a “bear market” by some market definitions, according to Reuters.

Bank stocks led the decline as concerns about the tariffs and their potential impact on economic growth raised speculation that the Bank of Japan may have to postpone raising interest rates.