On Thursday, banking stocks in Asia dropped, causing the overall markets to decline.
This was due to Credit Suisse having problems, which made people worry that there might be problems with banks around the world.
However, the bank was able to lessen the impact by getting financial support from the Swiss central bank.
They plan to borrow up to 50 billion Swiss Francs to stay afloat. This caused the stocks in Switzerland’s second largest lender to drop by as much as 30% on Wednesday.
The Topix Banks Index in Japan, which follows Japanese lenders, fell by as much as 6.4% in the morning session. However, it recovered slightly and was last trading 3.7% lower. The index has lost more than 8% so far this week. In Hong Kong, Standard Chartered and HSBC Holdings both dropped, while BOC Hong Kong also saw a decline. In South Korea, Shinhan Financial Group and KB Financial Group declined as well.
The fear that banks are in trouble is causing investors to lose confidence in both the tech and banking sectors. This is likely to continue for some time. The stock markets in Japan, Hong Kong, and China have also seen a decline due to this.
On Wednesday, Credit Suisse’s falling shares caused European and New York banking shares to decline. This, along with the collapse of two US banks within a week, has caused regulators to take emergency measures to protect deposits. As a result, markets could become messy due to the uncertainty surrounding the global economy and interest rates.