30 minutes ago
The Topix declines, led by cyclicals in financials, energy and consumer goods
Refinitiv data showed that Tuesday morning’s declines in the Japanese Topix were led by financials, energy and consumer discretionary stocks.
The index fell more than 3% to hit its lowest level since mid-January – with financials down more than 6%. Energy stocks fell 4.26% and consumer discretionary fell 3.15%.
Materials and real estate stocks fell nearly 3%, followed by industrials and utilities.
Based on index points, Toyota Motor Corp lost the most, trading down 4.37%. After Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group, Sony Group also lost the most, falling 3.1%.
– Jihye Lee
36 minutes ago
Singapore financials lead to losses in STI; DBS biggest loser
Singapore’s bank stocks were among the top losers in the Straits Times Index on Tuesday, despite a statement from the country’s monetary authority that it faces “insignificant exposure” to the impact of the US banking sector
Shares of DBS, UOB and OCBC Bank fell 2.2%, 1.24% and 1.81%, respectively, with DBS being the second-biggest loser on the STI.
The Singapore dollar was also down 0.1% against the US dollar, trading at 1.3474.
— Lim Hui Jie
Before an hour
Asia-Pacific banks continue to see losses from SVB fallout
Banks in Asia-Pacific continued to fall sharply in Tuesday morning’s trading.
Japan’s soft bank was down more than 3% in the first hour of Tokyo trading as investors continued to harbor concerns about Japan’s investment powerhouse.
Banks also posted sharp losses, with Mitsubishi Ufj Financial Group down 6.92%, SMFG down more than 7%, Mizuho Financial down 7.34% and Nomura down 4.6%.
42 minutes ago
South Korean defense firm Firstec jumps 9% after North Korea fired missiles
Shares in South Korean defense technology company Firstec surged over 9%, defying the sell-off in the broader market.
Firstec manufactures components used in South Korean weapon systems such as guided munitions and ground combat vehicles.
The stocks surge came after North Korea fired two short-range ballistic missiles off its east coast on Tuesday and Seoul and Washington held their biggest joint military exercises in five years.
Hanhwa Aerospace, a maker of artillery and anti-aircraft systems, also rose 0.63%.
— Lim Hui Jie
Before an hour
China wants to relax visa restrictions for foreigners
China will resume issuing “various” visas for foreigners to enter the country, its embassy in the United States said in a Chinese-language statement translated by CNBC.
The changes, announced overnight, are set to take effect on Wednesday Beijing time.
Visas to enter China issued before March 28, 2020 are valid again, and foreigners can enter the mainland from Hong Kong without a visa, among others, the statement said.
The statement noted that China will also resume programs that allow citizens of the US and other key countries to visit cities like Beijing for a few days — without needing a visa. The exact implementation remained unclear.
Mainland China tightened border controls in March 2020 to curb the domestic spread of Covid-19. The country abolished quarantine requirements for inbound travelers in early January.
– Evelyn Cheng
2 hours ago
Dollar index at lowest since February, Asian currencies mixed
The dollar index came in at 103.68, hovering around its weakest level since mid-February.
Asian currencies were mixed on Tuesday morning, with the New Zealand dollar and Australian dollar both gaining against the greenback to 0.6210 and 0.6651 respectively.
The Japanese yen weakened slightly against the US dollar to 133.24 and the offshore Chinese yuan also weakened against the greenback to 6.8591.
The Korean won also weakened marginally against the US dollar to 1,297.49.
Before an hour
US inflation will cool in February, Dow Jones estimates
The US CPI for February is expected to come in at 0.4% on a monthly basis or 6% on an annual basis, according to Dow Jones estimates.
This is only slightly lower than January inflation data of 0.5% and 6% respectively.
CPI will be the next data point that could provide insight into the Federal Reserve’s moves ahead of its March 21-22 meeting.
A hot inflation report will spark expectations that the Fed could hike rates by 50 basis points from the 25 points it introduced in February.
—Lim Hui Jie, Patti Dormitory
2 hours ago
Singapore says it has “insignificant” exposure to failed US banks
The Monetary Authority of Singapore said its exposure to Silicon Valley Bank was “insignificant”.
“Singapore’s banking system has insignificant exposure to these failed banks in the US,” MAS said in a statement Monday.
“Singapore banks are well capitalized and conduct regular stress tests against interest rate and other risks,” it said, adding that their liquidity positions are healthy and supported by a “stable and diversified funding base.”
– Jihye Lee
6 hours ago
Fed’s Barr to lead review of SVB regulation
The Federal Reserve’s top regulator will lead a review into the events that led to the Silicon Valley bank implosion, the central bank announced Monday.
Vice-Chairman for Oversight Michael S. Barr has been selected for the investigation, the results of which will be released on May 1st. The review will focus on reviewing and monitoring the SVB, which the Fed oversees in its role as regulator.
“The events surrounding the Silicon Valley bank require a thorough, transparent and expeditious review by the Federal Reserve,” Chairman Jerome Powell said.
– Jeff Cox
12 hours ago
Biden says banking system is safe, calls on Congress to tighten rules after failures
President Joe Biden said Monday Americans can be confident the US banking system is safe after regulators scramble over the weekend to create a plan to halt deposits at Silicon Valley Bank and Signature Bank.
“Your insoles will be there when you need them. Small businesses across the country with deposit accounts in these banks can breathe easier knowing they can pay their workers and pay their bills,” he said in brief remarks Monday before the market.
Biden stressed that no losses will be borne by US taxpayers. In addition, the banks’ management will be replaced and bank investors will not be protected, he said.
Biden also urged Congress to look for ways to strengthen banking rules to prevent these events from repeating themselves.
– Christina Cheddar Berk
Before an hour
CNBC Pro: SVB crisis shows how tough higher rates can be – but these 3 stocks are resilient, says strategist
Many companies will find it very difficult to operate in an environment of higher interest rates, as the Silicon Valley Bank crisis demonstrated, said Anthony Doyle, head of investment strategy at Firetrail Investments.
“There will be winners and losers, and part of the challenge for investors today is figuring out which companies will find this environment much more difficult than in a zero interest rate world,” he said.
Still, he identified three stocks that he thinks appear resilient in this new market environment.
CNBC Pro subscribers can read more here.
— Wheat Tan