11.9 C
Los Angeles
Sunday, March 26, 2023
- Advertisement -

Asia-Pacific’s benchmark indices erase all their gains for 2023 as global stocks fall

WorldAsiaAsia-Pacific's benchmark indices erase all their gains for 2023 as global stocks fall
- Advertisement -

Alan Baxter | Photo Library | Getty Images

Asia-Pacific’s leading index erased its year-to-date gains and is now flat in 2023 as bank shares fell on Tuesday.

The MSCI Asia Pacific index hit a low of 155.44 in afternoon trade – a decline of more than 9% from its February 2 high of 171.26 and erasing gains so far for the year. The index had closed at 155.74 on the last trading day of 2022.

- Advertisement -

In January, the index entered Bull market During the second trading week of the year, China’s reopening fueled optimism.

MSCI’s broadest index of Asia-Pacific shares outside Japan Meanwhile, it traded 1.47% lower on Tuesday afternoon, also marking a new low of the year. Last month, traders saw The index has room for further upside Despite near-term volatility.

Markets tumbled on Tuesday on concerns about spillover effects from the collapse of a Silicon Valley bank, even as US regulators stepped in to protect depositors over the weekend.

“Concerns of the global economic path are keeping pressure on the sector, which is more value-focused,” IG analyst Yep Jun Rong said in a Tuesday note.

On Tuesday, bank shares fell sharply in Japan, weighing on broader headlines, leading to a selloff in the Asia-Pacific. Refinitiv data showed the index closed 2.7% lower as financials fell 4.65%.

Tokyo-listed shares of Mitsubishi UFJ Financial Group fell 8.59%, Sumitomo Mitsui Financial Group SHED shed 7.57% and Mizuho Financial Group dropped 7.14%. Technology giant SoftBank Group also saw losses of more than 4%.

Yep like index Straits Times Index Its weightage is around 45% in bank stocks in Singapore. shares of dbs, United Overseas Bank And Overseas-Chinese Banking Corporation LED down on Tuesday

On Monday, the Monetary Authority of Singapore said its risk to failed US banks was “negligible”.

“Banks in Singapore are well capitalized and undergo regular stress testing against interest rate and other risks,” it said, adding that their liquidity position is healthy and supported by a “stable and diversified funding base”.

stock chart iconstock chart icon

Nomura equity strategists including Chetan Seth reiterated their February call and still expect more gains for the index.

“While we do not see any material fundamental impact on Asian stocks from US banking sector issues, there is always the risk of some ‘skeletons emerging from the closet’,” strategists wrote in a Monday note.

“We are inclined to believe that these issues will not settle for the health of the banking sector,” he said.

Stock picks and investment trends from CNBC Pro:

‘special conditions’

Frank Benzimra, Societe Generale’s head of Asia equity strategy, said the increase in systemic risk at the end of the Fed cycle is widely seen as part of a pattern.

“When inflation rises, the first order effect is higher rates, the second is increased systemic risk – the SVB episode is part of this framework,” he said, adding that threats to financial stability “usually occur at a late stage.” ” Fed cycle.”

“Having said that, SVB is a special case in terms of its funding, which is not subject to coverage and funding ratios (LCR/NSFR rules), and the MBS/UST portfolio is available for sale,” he added. Said.

Source link

stories from the outbreak

stories from the outbreak Source link

Here are 5 features of the newly launched Redmi A2 and Redmi A2 Plus

Redmi A2 and Redmi A2+ are the new budget smartphones from Xiaomi that have been...

Pokémon Go Giovanni Counter, team line-up for late March 2023

Giovanni's team had a fresh pokemon go after the arrival of from the...
- Advertisement -

Follow us

— Advertisement —

Most Popular Articles