Asian markets sink as SVB contagion fears hit banking sector
Asian markets sank Tuesday as banks suffered from fears of contagion after the collapse of two US lenders. The swift closure of Silicon Valley Bank and Signature Bank forced US authorities to pledge support for other lenders and depositors, but shares in several US banks were hammered on fears of a run by customers.
The collapse of SVB was largely the result of the Fed’s sharp interest rate hikes aimed at quelling inflation, which hit securities hard, and several commentators and leading banks say the Fed might need to pause its tightening campaign to provide some stability to financial markets.
