Asian stocks ended mixed on Monday as regulators from across the world moved to assuage investor concerns of a global ripple effect coming from the United States.
In a statement released Sunday, the Treasury, Federal Reserve and the FDIC said they would “fully protect” depositors with funds in the Silicon Valley Bank.
In addition, Signature Bank, a New York bank, was also closed by regulators over the weekend.
China’s Shanghai Composite Index jumped 1.2 percent to 3,268.70 as Beijing surprised markets by retaining the head of the central bank and finance minister in their posts, prioritizing continuity during a period of uncertainty in the world’s second-largest economy.
Hong Kong’s Hang Seng index rallied 2.0 percent to 19,695.97, led by technology stocks. HSBC closed little changed after it struck a last-minute deal to buy the collapsed Silicon Valley Bank U.K.
Japanese shares fell sharply, with the Nikkei 225 Index closing down 1.1 percent at 27,832.96. The broader Topix ended 1.5 percent lower at 2,000.99.
Tech investor SoftBank Group declined 1.7 percent amid fears of contagion from the collapse of Silicon Valley Bank.
Seoul stocks rose notably to snap a three-day losing streak on hopes for a slower-than-expected rate hike by the Federal Reserve, with analysts at Goldman Sachs saying they no longer expect the U.S. central bank to hike interest rates later this month.
The Kospi gained 0.7 percent to finish at 2,410.60. Naver, LG Chem and LG Energy Solutions rose 1-2 percent.
Australian markets ended lower, dragged down by tech and financial stocks. Mining stocks ended a tad higher on optimism around China’s steel demand.
The benchmark S&P/ASX 200 hit a nearly two-month low before closing half a percent lower at 7,108.80. The broader All Ordinaries Index slipped 0.5 percent to 7,311.
Across the Tasman, New Zealand’s benchmark S&P NZX-50 Index fell 0.5 percent to 11,672.90.
U.S. stocks tumbled on Friday and Treasury yields extended their slide amid worries over financial contagion from the implosions of Silicon Valley Bank (SVB) and Silvergate Capital (SI).
February’s employment report sent mixed signals, with job growth beating expectations while slower wage growth and a rise in the unemployment rate fueled speculation that the Fed might moderate its rate hikes.
The Dow fell 1.1 percent, the S&P 500 lost 1.5 percent and the tech-heavy Nasdaq Composite slumped 1.8 percent.
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