Japan's stocks plunged after President Donald Trump slapped the nation with a 24% levy as part of tariffs on trading partners worldwide. A stronger yen also dragged exporter shares lower.

The Topix Index fell 4% to 2,544.41 as of 9:12 a.m. Tokyo time, while the blue-chip Nikkei declined 4.1% to 34,281.76. Contracts traded in Singapore initially spiked, then fell as details of the tariffs rolled out, suggesting the market will face volatility Thursday as investors digest the news.

"Overall I think this was on the harder side of expectations," said Nick Twidale, chief analyst at AT Global Markets in Sydney. "Japan and most of Asia took a hit — I think stocks will take a battering in Asia today, alongside most currencies, although the yen is a different story and may appreciate on its haven status."

Trump also reiterated 25% tariff on autos, which may weigh on carmakers that are already under-performing the broader Topix index this year. The yen extended gains to strengthen 0.8% versus the dollar, while US equity futures sank amid concern the escalating trade war will harm the nation's economy.

Exporting companies such as electric appliances and the transportation sector were one of the leading losses on the Topix index. 

Japan's benchmark Topix is down more than 8% this year as jitters over tariff concerns damped investor sentiment. The exporter- and tech-heavy Nikkei 225 has been hit harder, tumbling more than 15% from its December peak to enter a correction.

Source : Bloomberg