Asian stocks decline as a fresh bank crisis overwhelms. As investors continued to sell bank shares today due to concerns about a worldwide debt crisis.
Asian stocks markets weaken on Thursday
Asian stocks markets fell again on Thursday as bank shares came under fresh selling pressure amid worries about a global debt crisis. But gains in some local markets were limited thanks to a positive prognosis for the Chinese economy.
After struggling Swiss lender Credit Suisse Group AG (SIX: CSGN) announced it would borrow up to $54 billion from the Swiss National Bank to support liquidity. Fears over an impending banking collapse were allayed. Regional stocks also pared some of their losses.
Asian stocks assess China’s growth optimism
Among their Asian rivals, China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes dropped the least. Shedding 0.5% each, after investment bank Goldman Sachs raised its prediction for the nation’s economic growth to 6% from 5.5%.
The bank claimed that the largest economy in Asia was poised for a recovery this year. Based on improving patterns following the country’s 3 COVID lockdowns. This, along with recent information indicating a steady, albeit uneven, economic revival in the nation, helped inspire some hope
Major stock indices sank on Thursday
But in a market that was generally negative, China was a relatively bright spot. As a result of a crisis in bank equities spreading to technology, Hong Kong’s Hang Seng index sank 1.5%, while the Taiwan Weighted index and South Korea’s KOSPI fell 1.1% and 0.3 percent.
Among the worst performers for the day was the Nikkei 225 index of Japan, which fell 1.1 percent as major financial companies came under fresh selling pressure.
The Nikkei’s worst offenders included Dai-ichi Life Holdings Inc (TYO:8750), Sumitomo Mitsui (NYSE: SMFG) Financial (TYO:8316), and T&D Holdings Inc (TYO:8795), which all experienced losses of 5.8% to 7 percent.
As a result of declines in the stocks of Australia’s four largest banks, the ASX 200 benchmark also fell 1.5%. Concerns about future interest rate increases by the Reserve Bank increased in response to a relatively strong employment report for Feb.
Investors are moving money into safe havens
Although a rout in Asian markets had taken a short break on Wednesday, Fresh worries about a global banking crisis, brought on by a rout in Credit Suisse shares. markets to start falling again on Thursday.
The majority of investors switched away from risky commodities and toward safe havens like gold and the dollar. Following indications that core consumer inflation stayed persistent in Feb, Confusion surrounding the direction of American monetary policy also contributed.
