Despite US regulators' intervention, Asian stocks fell broadly on Tuesday, dragged down by banking shares, as fears over the fallout of Silicon Valley Bank’s collapse gripped the market despite US government efforts to stabilize the financial system.
- Japan’s Nikkei 225 tumbled 2.19% to post its third straight day of declines.
- Hong Kong’s Hang Seng briefly dropped 2.5%, before trimming losses in the afternoon.
- Korea’s Kospi lost almost 3%. China’s Shanghai Composite shed 0.65%.
Banks were the hardest hit sector across the region.
- HSBC Holdings plunged more than 5% in Hong Kong after the banking giant pledged to inject 2 billion pounds ($2.4 billion) of liquidity into SVB’s UK unit, which it had bought for 1 pound.
- Standard Chartered Bank sank nearly 7%.
Other Asia Pacific banking shares also fell.
- In Hong Kong, shares in Bank of China (Hong Kong) and Hang Seng Bank fell 3.7% and 1.3% respectively. Pan-Asian insurer AIA Group traded down 4.7%.
- In Tokyo, Mitsubishi UFJ Financial Group, Japan’s biggest bank, lost 8.4%. Sumitomo Mitsui Financial Group and Mizuho Financial Group both dropped more than 7%.
- In Seoul, KB Financial Group and Shinhan Financial Group fell 3.6% and 2.5% respectively.
- In Shanghai, China Merchants Bank dropped 1.2% and China Minsheng Banking Corp retreated by 0.3%.
- In Sydney, Macquarie Group pulled back by 3.1% and ANZ Group was 1.5% lower.