Tokyo Stocks Open Lower Extending US Losses
Umer Jamshaid Published March 13, 2023 | 08:18 PM
Tokyo stocks opened lower on Monday after a rout on Wall Street as banking shares wobbled on contagion fears after the failure of regional lender Silicon Valley Bank (SVB)
Tokyo, (UrduPoint / Pakistan Point News - 13th Mar, 2023 ):Tokyo stocks opened lower on Monday after a rout on Wall Street as banking shares wobbled on contagion fears after the failure of regional lender Silicon Valley Bank (SVB).
The benchmark Nikkei 225 index was down 1.76 percent, or 495.49 points, at 27,648.48 about 80 minutes after the opening bell, while the broader Topix index lost 2.14 percent, or 43.43 points, to 1,988.15.
"As markets open, all focus will be on whether authorities have done enough to stabilise confidence in US banks to avoid a spread of depositor flight," National Australia Bank (NAB) senior analyst Tapas Strickland said in a note.
Wall Street stocks ended Friday's session decisively lower, with the blue-chip Dow Jones Industrial Average finishing down 1.1 percent at 31,909.96, the broad-based S&P 500 falling 1.5 percent, and the tech-rich Nasdaq Composite Index sliding 1.8 percent.
US Treasury Secretary Janet Yellen on Sunday "said there would be no bailout for SVB, but hinted at something to shore up depositor confidence", Strickland said.
The US authorities "of course will do whatever it takes to avoid a bank run spreading", he said, adding that the "key is whether actions to date are enough, or whether more is needed".
US authorities unveiled sweeping measures Sunday to rescue depositors' money in full from SVB and to promise other institutions help in meeting customer needs, as they announced a second tech-friendly bank had been closed by regulators.
In a joint statement, financial agencies including the US Treasury said SVB depositors would have access to "all of their money" starting Monday, March 13, and that American taxpayers will not have to foot the bill.
NAB's Strickland also noted that traders are concerned about potential impacts from rate hikes given that "inflation remains too high".
In Asia, the dollar fetched 134.91 yen, against 134.80 in New York late Friday.
Among major shares in Tokyo, SoftBank Group was down 2.58 percent at 5,205 yen, Toyota was off 1.79 percent at 1,862 yen, and Uniqlo operator Fast Retailing was down 0.42 percent at 28,615 yen.
Mega banks were lower, with Mitsubishi UFJ Financial Group trading down 2.16 percent at 912.5 yen and Sumitomo Mitsui Financial Group off 2.96 percent at 5,740 yen.
But shipping firms were higher with Mitsui O.S.K. Lines trading up 1.14 percent at 3,560 yen, Kawasaki Kisen rising 2.54 percent to 3,435 yen, and Nippon Yusen gaining 0.21 percent to 3,402 yen.
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