Asian markets stable as Credit Suisse gets a rescue deal

20 Mar 2023 , 08:21 AM

On Monday, the Asian stock market stabilized while U.S. futures showed an increase, following the news of Credit Suisse’s rescue deal over the weekend and a united effort from central banks to boost market confidence. However, trade remained uneasy and unpredictable as concerns about the spread of financial risks continued to loom over the industry.

Amidst volatile trading, S&P 500 futures climbed 0.7%, and bonds experienced a decline.

Bank shares, which had suffered losses, rebounded by 1% in Tokyo, although the wider Nikkei index declined by 0.8%. In Australia, financial stocks dropped by 0.8%, contributing to a 0.5% drop in the ASX 200 index.

Hong Kong’s Hang Seng is trading 1.81% lower. Whereas Shanghai SE Index is trading 0.26% higher.

Swiss authorities arranged a sudden merger between Credit Suisse and UBS, in which UBS will purchase Credit Suisse for 3 billion francs ($3.2 billion) and take on potential losses of up to $5.4 billion.

The Federal Reserve, European Central Bank, and Bank of Japan made a commitment to enhancing their support for market liquidity by ramping up the frequency of seven-day dollar-swap operations, shifting from weekly to daily operations.

The yield on 10-year U.S. Treasury bonds increased by 9 basis points to reach 3.49%, while the yield on 2-year bonds increased by 13 basis points to 3.973%.

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