ASIAN STOCK MARKET: TURMOIL CONTINUES AS SVB COLLAPSE-IMPACT NOT FADED YET, OIL DROPS TO $74.00

Markets in the Asian domain have continued their downside momentum as investors are dumping equities after the collapse of Silicon Valley Bank (SVG). Investors have drastically cut their exposure to banks and financial lenders in hopes that the delinquency costs could fuel further.

Higher rates from global central banks have accelerated interest obligations and a failure on them has resulted in a pile-up of Non-Performing Assets (NPAs). Bloomberg reported that the combined market capitalization of the Morgan Stanley Composite Index (MSCI) World Financials Index and MSCI Emerging Markets (EM) Financials Index has dropped about $465 billion in three days.

S&P500 futures have attempted a recovery in the Asian session after a subdued Monday, however, the 500-US stocks basket futures are failing to fuel optimism in the Asian indices.

At the press time, Nikkie225 nosedives 2.16%, ChinaA50 tumbles 0.76%, Hang Seng plunges 1.86%, while Nifty50 remains flat.

Japanese stocks have been witnessing a sheer sell-off after ex-Bank of Japan (BoJ) Governor Haruhiko Kuroda maintained a dovish policy amid an absence of recovery in the overall demand and the wages distributed. The street is expecting that novel BoJ Governor Kazuo Ueda would provide a roadmap of an exit from the Yield Curve Control (YCC) and the ultra-loose monetary policy, however, the process would be gradual as anticipated.

Chinese equities are likely to dance to the tunes of Wednesday’s Retail Sales (Feb) data. The economic data is expected to expand by 3.5% against a contraction of 1.8% displayed prior. An upbeat Retail Sales data might propel hopes of economic recovery in the Chinese economy after the rollback of lockdown curbs.

Global stocks will remain on tenterhooks ahead of the release of the United States Consumer Price Index (CPI) data, which is expected to increase at a reduced pace on a monthly basis.

The oil price has dropped to near $74.00 on hopes that the US economy will face a recession as higher rates by the Federal Reserve (Fed) are resulting in a dismal outlook.