Bank slide deepens as SVB contagion fear rattles markets
Asia’s share markets slid on Tuesday, with financial stocks in Tokyo leading losses as fear of a U.S. banking crisis had investors fleeing the sector and slashing the interest rate outlook even ahead of U.S. inflation data due later in the day.
Japan’s Nikkei (.N225) dropped 2%. The Tokyo Stock Exchange banks index (.IBNKS.T) fell more than 5%, setting it on course for its steepest drop in nearly six months. Banks shares in Singapore and Australia fell. Hong Kong shares in HSBC and Standard Chartered dropped more than 5%.
Markets remained nervous following the collapse of Silicon Valley Bank last week and the failure of New York’s Signature Bank over the weekend even after the U.S. government took steps to shore up systemic confidence.
Heavy selling hit U.S. regional bank stocks overnight and traders raced away from bets on U.S. rate hikes, reckoning the instability would turn policymakers cautious. S&P 500 futures stabilised in Asia trade and were last up 0.6%.
This report’s information was first seen on REUTERS; to read more, click this link.