US bank failures cast a shadow on Asian stocks

14 Mar 2023 , 08:26 AM

Asian shares witnessed a drop on Tuesday, as global investors remained shaken by concerns of potential future disruptions, spurred by the recent failures of Silicon Valley Bank and Signature Bank in United States. 

Despite reassurances from Japanese government spokesperson Hirokazu Matsuno that the risk of direct impact from the US bank failures on the Japanese financial system is low, Asian markets continued to experience a decline in the morning trading session due to persistent fears and concerns.

The Nikkei 225, the primary benchmark index in Japan, fell by 1.7% to reach 27,350.58, thus extending the previous day’s losses. Similarly, the S&P/ASX 200 index in Australia experienced a dip of 2.1% to settle at 6,961.30, while South Korea’s Kospi index fell by 0.9% to reach 2,389.77.

Hong Kong’s Hang Seng was last seen at 19,421, down by 1.38%. Taiwan’s TSEC 50 index was trading at 15,406.71, down by 0.99%.

The S&P 500 experienced erratic trading on Wall Street, fluctuating between an early loss of 1.4% and a midday gain of almost the same magnitude before ultimately dropping by 0.2%. At the same time, the Dow Jones Industrial Average fell by 0.3%, or 90 points, while the Nasdaq composite managed to rise by 0.4%.

The standard US crude oil benchmark experienced a decline of 33 cents, settling at $74.47 per barrel during energy trading. Similarly, the international standard, Brent crude, also saw a loss of 33 cents, dropping to $80.44 per barrel.

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