Stocks fell Thursday morning after the US and Europe fell as turmoil at Credit Suisse sparked fresh selling in the banking sector.
Japanese Topics South Korea’s Kospi fell 0.1% and Australia’s S&P/ASX 200 fell 1.5%. Hong Kong’s Hang Seng and China’s CSI 300 were down 1.3% and 0.5% respectively.
Japanese bank stocks were put on the market again, with the Topix Banks index down 3.7%. Local lenders Tochigi Bank and Keiyo Bank were the hardest hit, with losses of 5.4% and he 3.6% respectively.
Investor wall street Investor concerns about the bond portfolios of lenders around the world have resurfaced after the value of shares and bonds of troubled lender Credit Suisse plummeted.
Those losses came from concerns about contagion from tech-focused lender bankruptcies, despite Tuesday’s gains. Silicon Valley Bank retreated.
The S&P 500 fell 0.7% and the Nasdaq Composite closed flat on Wednesday. JPMorgan Chase, the world’s largest bank by assets, fell 4.7% of his, while Morgan Stanley and Citibank both fell more than 5% of him. The KBW Nasdaq Bank Index closed 3.6% lower.
San Francisco-based First Republic Bank was hit hardest by the SVB collapse, losing 21.4%.
Later, Credit Suisse said on Thursday, Borrow up to $54 billion It has bought back about $3 billion of debt from the Swiss central bank in an attempt to stem the crisis surrounding the bank. The bank’s shares closed 24.2% lower on Wednesday.
European markets responded positively to the news, with Euro Stoxx 50 and FTSE 100 futures contracts up 2.2% and 1.2% respectively. Wall Street’s S&P 500 contract added 0.5% to him.
Yields on two-year US Treasury bills, which are closely tied to interest rate expectations, rose 0.02 points to 3.99% during Asian trading on Thursday and fell 0.31 points the day before. Yields on 10-year bonds also rose 0.02 points to 3.51%. Yields move inversely to prices.
The turmoil in the banking sector has given new life to expectations that the US Federal Reserve (Fed) must change policy and ease its aggressive strategy of raising interest rates.
