Asian stock markets closed lower on Monday amid concerns that the bankruptcy of Silicon Valley Bank (SVB) in the US could negatively impact the financial sector in Asia. The sell-off was also driven by a slump in banking stocks.
Hong Kong’s Hang Seng Index fell 2.27% to close at 19,247.96, with the biggest losers being Jingrui (-38.14%), Kaisa Holdings (-32.99%), and Sinosoft Technology (-30%). Most Kwai Chung (+85.26%), Winto (+60.61%), and China Environmental Resources Group (+55.88%) were the biggest winners.
In China, the Shanghai Composite Index closed down 0.72% at 3,245.31, with Essence Information Technology (-20%), Zhejiang Jinke Peroxides (-10.67%), and Beijing Haitian Ruisheng Science Technology (-10.36%) among the top losers.
Japan’s Nikkei 225 Index fell 2.19%, its steepest single-day decline in three months, to close at 27,222.04, dragged down by Resona (-9.19%), T&D Holdings (-8.99%), and Mitsubishi UF J Financial (-8.59%). East Japan Railway (+2.24%), Eisai (+2.13%), and Central Japan Railway (+0.99%) were among the winners.
In South Korea, the KOSPI Index closed down 2.56% at 2,348.97, with Sewon E&C (-29.97%), Douzone Bizon (-23.58%), and Capro (-15.66%) among the biggest losers. ENPlus (+8.21%), Firstec (+7.46%), and IIjin Electric Co (+5.44%) were among the winners.
The S&P/ASX 200 Index in Australia closed down 1.41% at 7,008.90, with energy stocks leading the decline. Computer share (-7.71%), Perpetual (-6.96%), and Omni Bridgeway Ltd (-6.87%) were among the biggest losers, while Ramelius Resources (+5.83%), Perseus Mining (+4.43%), and Silver Lake Resources (+3.77%) were among the winners.
Meanwhile, the SET Index in Thailand closed down 3.13% at 1,523.89, with Batter World Green (-17.11%), Preecha Group (-15.38%), and Xspring Capital (-14.95%) among the biggest losers. Prinyasiri (+7.14%), Thai Fabric Factory (+6.15%), and Boutique New City (+4.35%) were among the winners.
Investors are worried that the bankruptcy of SVB, which is the third-largest bank failure in US history, will have a ripple effect on global financial markets.