(Updates prices at midday trading recess)

By Kevin Buckland

TOKYO, April 7 (Reuters) - Japan's Nikkei share average

tumbled nearly 9% early on Monday, while an index of Japanese

bank stocks plunged as much as 17%, as concerns over a

tariff-induced global recession continued to rip through

markets.

The Nikkei dropped as much as 8.8% to hit 30,792.74

for the first time since October 2023, before entering the

midday trading recess down 6.5% at 31,591.84.

All 225 component stocks of the index were in the red.

The broader Topix sank as much as 9.6% before ending

the morning session down 6.5%.

Speaking on Sunday aboard Air Force One, U.S. President

Donald Trump characterized his latest round of sweeping tariffs

as "medicine" aimed to rectify trade imbalances, and signalled a

willingness to accept the market rout that followed.

Since Trump revealed the more aggressive-then-anticipated

levies last week, the Nikkei has tumbled 11.6% and the U.S. S&P

500 has dropped 10.6%.

"It's extremely difficult to judge how far this stock market

correction will run (but) as long as there exists a lack of

clarity of tariffs and each country's response, the market will

remain heavy," said Maki Sawada, an equities strategist at

Nomura Securities.

At the same time, "the market currently is only pricing in

bad news", so if there are signs of flexibility on tariffs or

the announcement of economic support measures, "it's highly

likely we'll see a bottom form in the market," Sawada said.

A topix index of banking shares slumped as much

as 17.3% on Monday, before recovering slightly to enter the

midday recess down 9.8%.

Banks have borne the brunt of the sell-off in Japanese

equities, losing nearly a quarter of their combined value over

the past three sessions, as recession worries compressed bond

yields and push out bets for further interest rate hikes by the

Bank of Japan.

"This is a sell-anything that has made money move," with

banks at the forefront of that, said Rikki Malik, a portfolio

manager at Springboard Capital.

However, "I think we are close to capitulation and will see

a bounce very soon."

Resona Holdings ( RSNHF ) was the worst-performing lender on

Monday, with a 12.2% slump. Shares of Mizuho dropped

11.3% and Nomura slid 10.9%.

Several chip-sector stocks also saw heavy selling, with

chipmaker Renesas dropping 14.8% and silicon

manufacturer Sumco ( SUMCF ) sliding 14.4%. Heavyweight

chip-making equipment manufacturer Tokyo Electron ( TOELF ) sank

8.6%.