Japanese stock futures trading was suspended Monday morning local time due to a circuit breaker. This comes as the Dow Jones and S&P 500 Futures fell 4% each amid fears of a ‘Black Monday’ on April 7. In early trade in Tokyo, the Nikkei 225 was off 7.35%, adding to a 2.75% drop on Friday, while in Seoul the Kospi was off 4.8%.

The global stock market wipeout follows US President Donald Trump’s ‘Liberation Day’ tariffs announcement on Wednesday. The Dow has posted back-to-back losses of more than 1,500 points for the first time ever. It fell by 2,231 points on Friday.

China stocks are expected to fall sharply when trading resumes after an extended weekend. Beijing announced 34% tariffs on all imports from the US in retaliation to Trump’s announcement. A gauge of US-listed Chinese shares fell 8.9% on Friday.

The suspension of Japanese stock futures trading due to a circuit breaker indicates that the market has experienced a significant price movement—either a sharp decline or a rapid rise—triggering an automatic mechanism designed to halt trading temporarily.

This is a regulatory measure used by stock exchanges, such as the Japan Exchange Group (JPX), which oversees the Tokyo Stock Exchange, Osaka Exchange, and Tokyo Commodity Exchange, to prevent panic selling or buying and stabilize the market during extreme volatility.