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(Bloomberg) -- Japan’s Nikkei 225 Stock Average slid into a bear market over fears of a widening trade war, while Japanese Prime Minister Shigeru Ishiba was reportedly set to have a call with US President Donald Trump on Monday night.Most Read from BloombergHousing Agency Aims to Relocate Its DC HeadquartersBoston Mayor Wu Embraces Trump Resistance as Campaign Heats UpThis Skinny Mexico City Tower Is Just 14 Feet Wide on One SideThe Irish Hot Press Is the Low-Tech Laundry Trick the World NeedsWh

Chancellor-in-waiting Friedrich Merz called on Monday for swift action to secure Germany's competitiveness in response to sliding stock and bond markets, following U.S. President Donald Trump's announcement of sweeping tariffs. Major stock indexes plunged on Monday as Trump showed no sign of backing away from his tariff plans, and investors bet the mounting risk of recession could see the Federal Reserve cutting interest rates as early as May.

Wall Street is coming off its worst week since the advent of the pandemic, shedding over $5 trillion in value amid Trump's tariff plans.

SHANGHAI (Reuters) -China intervened on Monday to support domestic stocks plunging on U.S. tariff woes, with a sovereign wealth fund increasing its holdings in equities and saying it would defend market stability. Central Huijin Investment, a unit of China Investment Corp, said in statement it has added China-listed shares via exchange-traded funds and will continue to increase holdings to "safeguard the smooth operation of the capital market." The Shanghai Composite Index lost 7% on Monday in its worst day in five years, reeling after the U.S. imposed extra tariffs of 34% on China last week which then fired back with its own 34% levies.

Policymakers cross Asia are preparing measures to support financial markets as a rout deepened following sweeping tariffs announced by U.S. President Donald Trump that stoked widespread recession worries. China's sovereign fund Central Huijin Investment said it was increasing holdings in China stocks, and would defend market stability, as the local market tumbled amid fears a widening trade war would unleash a deep recession. It is "firmly optimistic about the development prospects of China's capital market and fully recognizes the current investment value of A-shares."

“I don’t want anything to go down, but sometimes you have to take medicine to fix something,” Trump told reporters on Sunday.

“We expect crypto markets to dip once US markets open,” one trader said.