Hong Kong (CNN) Bank stocks fell in Asia on Thursday, dragging broader markets lower, as problems at Credit Suisse fueled fears. Bank chaos Spreading all over the world.
The message was taken by the megabank, which has repeatedly blocked financial support from the Swiss central bank Not floating has limited the worst losses.
The lender said it would borrow up to 50 billion Swiss francs ($53.7 billion) from the Swiss National Bank. Investors sent shares of Switzerland’s second-largest lender down as much as 30% on Wednesday.
The bank called the loan a “decisive step to strengthen its liquidity early on”.
Japan’s TOPICS Banks Index, a key index that tracks Japanese lenders, fell as much as 6.4% in the morning session. It later pared some losses and last traded 3.7% lower. The index has lost more than 8% so far this week.
In Hong Kong, Standard Chartered (SCBFF) Down almost 4%. HSBC Holdings (HSBCPRA) decreased by 2.5%. Local bank BOC Hong Kong fell 3.1%.
In South Korea, major lenders Shinhan Financial Group and KB Financial Group fell 1.2% and 0.5% respectively.
“We are seeing a definite unwinding of investor confidence in both the technology and banking sectors,” said Clifford Bennett, chief economist at Sydney-based online brokerage ACY Securities. “It’s highly unlikely that these concerns will go away anytime soon.”
Loss of confidence of investors and depositors can bring down any bank, regardless of balance sheet,” he added.
Japan scale Nikki 225 (N225) It fell as much as 2.2% in early trade. It was down 0.9% in last trade. of Hong Kong Hong Cheng (HSI) down 1.3%. of China Shanghai Mix (SHCOMP) fell 0.4%.
of Korea Cosby (Cosby) It fell as much as 1.4%, but later reversed all losses and traded last.
The Korean won weakened sharply against the US dollar, falling nearly 1% in morning trade, as investors piled into traditional safe-haven currencies like the greenback. The Chinese yuan was down 0.1% against the dollar.
Banking stocks were hit in Europe and New York on Wednesday Shares of Credit Suisse fell to a new record low, spooking investors already reeling from the rapid collapse of two U.S. banks in less than a week.
Bank failures have already forced US regulators Emergency measures Sunday to secure deposits with two lenders: Silicon Valley Bank and Signature Bank.
“Markets could be confused amid the fallout from the collapse of Silicon Valley Bank, coupled with uncertainty about the future path of the global economy and interest rates,” said Marty Dropkin, head of Asia Pacific equities at Fidelity International.
He noted that companies are beginning to issue more cautious guidance. Layoff announcements are also on the rise.
“These are clear signs that businesses are starting to feel pressure on their profit margins,” he said. “We believe there will be a revenue correction this year.”
