Source: Financial stocks lose US$465bn on SVB impact | The Herald

Global financial stocks have lost US$465 billion in market value in two days as investors cut exposure to lenders from New York to Japan in the wake of Silicon Valley Bank’s collapse.
Losses widened Tuesday, with the MSCI Asia Pacific Financials Index dropping as much as 2,7 percent to the lowest since November 29. Mitsubishi UFJ Financial Group Inc. slid as much as 8,3 percent in Japan, while South Korea’s Hana Financial Group Inc. fell 4,7 percent and Australia’s ANZ Group Holdings lost 2,8 percent.
There are concerns that financial firms could see an impact from their investments in bonds and other instruments on the SVB-induced worry.
Treasury yields plunged Monday amid expectations the Federal Reserve will hold off raising rates due to turmoil in the banking system.
“The financial markets are walking on eggshells,” John Woods, Credit Suisse Group’s chief investment officer for Asia-Pacific, said in an interview with Bloomberg Television. “We really need to know precisely what impact this is likely to have around the broader market. My sense is that the Fed will probably pause because I think this is largely to do with liquidity risk.”
The aggregate market value of companies included in the MSCI World Financials Index and the MSCI EM Financials Index has dropped about US$465 billion since Friday. US regional banks were among the hardest hit Monday as the KBW Regional Banking Index sank 7,7 percent, its sharpest plunge since June 2020.
First Republic Bank’s shares have plunged almost 73 percent in three sessions to be the top losers on the MSCI World Financials gauge in the period. Moody’s put all long-term ratings of the lender on review for downgrade. -Bloomberg
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