Credit Suisse, Dow, S&P and SVB updates
Banking stocks in Asia fell on Thursday, dragging the broader markets lower, as troubles at Credit Suisse sparked fears that banking turmoil is spreading around the world.
News that the beleaguered megabank has taken up the Swiss central bank’s offer of financial support in order to stay afloat has limited the worst of the losses.
The lender said it would borrow up to 50 billion Swiss Francs ($53.7 billion) from the Swiss National Bank. Investors sent shares in Switzerland’s second biggest lender crashing by as much as 30% Wednesday.
The bank called the loan a “decisive action to pre-emptively strengthen its liquidity.”
Japan’s Topix Banks Index, a key index that tracks Japanese lenders, tumbled as much as 6.4% in the morning session. It then trimmed some losses and was last trading 3.7% lower. The index has lost more than 8% so far this week.
In Hong Kong, Standard Chartered (SCBFF) sank nearly 4%. HSBC Holdings (HSBCPRA) dropped 2.5%. Local bank BOC Hong Kong was down 3.1%.
In South Korea, major lenders Shinhan Financial Group and KB Financial Group declined 1.2% and 0.5% respectively.
“What we are seeing is a definite unravelling of investor confidence across both the tech and banking sectors,” said Clifford Bennett, chief economist at ACY Securities, a Sydney-based online broker. “It is highly unlikely these concerns are going to simply vanish any time soon.”
“Regardless of balance sheets, a loss of confidence by investors and depositors can bring down any bank,” he added.
Read more here.