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HomeIndiaTokyo stocks close lower after US lender default - MarketsNews WAALI

Tokyo stocks close lower after US lender default – MarketsNews WAALI

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News Waali latest news updates.

TOKYO: Tokyo stocks closed lower on Monday as contagion fears grew after the failure of US regional lender Silicon Valley Bank (SVB) sent Wall Street shares tumbling.

The benchmark Nikkei 225 index ended down 1.11 percent, or 311.01 points, at 27,832.96, while the broader Topix index lost 1.51 percent, or 30.59 points, to 2,000.99.

“SVB’s failure led to global risk-off sentiment as concerns about the financial system grew,” IwaiCosmo Securities said.

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“The prospect that the Bank of Japan’s massive easing policy is likely to be maintained for a while also spurred a sell-off in banking shares, while the yen’s appreciation against the dollar weighed on export-related shares.”

US authorities unveiled sweeping measures on Sunday to rescue depositors’ money in full from SVB.

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The Federal Reserve also said it would make additional funding available to help other institutions meet customer needs, as a second tech-friendly bank was shut down by regulators.

With the two bank failures shaking nerves, US President Joe Biden promised to hold the people responsible for “this mess” “fully accountable”.

Biden said he would deliver remarks on Monday about maintaining a resilient banking system.

Tokyo shares close higher for a fifth day

In Asia, the dollar rose to 134.35 yen, down from 134.80 in New York late on Friday.

SoftBank Group fell 1.67 percent to 5,254 yen and Toyota lost 1.69 percent to 1,864 yen. Hitachi fell 2.30 percent to 6,888 yen.

Megabanks ended sharply lower, with Mitsubishi UFJ Financial Group falling 3.47 percent to 900 yen, and Sumitomo Mitsui Financial Group sinking 4.16 percent to 5,669 yen.