The third-largest crash in Nikkei history dominated Japanese media as markets opened with a dramatic plunge below 31,000 points, a level not seen in 18 months. By early morning, losses exceeded 2,900 points as panic selling spread across Asia, with Hong Kong eventually falling 13%.

The market collapse directly continued the previous days' trade war escalation, with China's 34% retaliatory tariffs against the US triggering fears of global recession. Japanese corporations began revising FY2026 forecasts from growth to decline.

Prime Minister Ishiba's response evolved throughout the day, from emphasizing Japan's "fairness" in trade to holding a much-anticipated phone call with Trump by early afternoon. Their conversation resulted in an agreement to appoint cabinet-level tariff negotiators.

As Japan grappled with economic turmoil, Emperor Naruhito and Empress Masako visited Iwoto Island, beginning commemorations for the 80th anniversary of WWII's end.