Asian Shares Retreat Amid Contagion Fears

Asian stocks ended broadly lower on Thursday as concerns grew about the health of the global banking system. Investor attention also moved to central bank meetings and regulatory action to shore up confidence and avoid a repeat of the 2008 financial crisis.

The European Central Bank (ECB) meets later today, with analysts remaining divided over whether the central bank will agree a 25 or 50 basis point rise.

Chinese shares fell sharply after reports that China’s securities regulator is holding up approvals for new applications to sell global depository receipts.

The benchmark Shanghai Composite Index slumped 1.1 percent to 3,226.89, while Hong Kong’s Hang Seng Index settled 1.7 percent lower at 19,203.91, dragged down by oil stocks.

China’s home prices rose for the first time in a year and a half in February due to favorable government policy, official data showed earlier in the day.

Japanese shares fell again after snapping a three-day losing run in the previous session. The Nikkei 225 Index dropped 0.8 percent to 27,010.61 despite positive core machinery orders and trade balance data.

The broader Topix closed 1.2 percent lower at 1,937.10 on fears the U.S. banking turmoil may widen and spread globally. Tech stocks bucked the weak trend, with Advantest and Tokyo Electron rising around 1 percent each.

Seoul stocks recovered from an early slide to end on a flat note. Market heavyweight Samsung Electronics edged up slightly after unveiling plans to invest around 300 trillion won ($230 billion) by 2042.

Australian markets declined as falling commodity prices amid fresh troubles at Swiss lender Credit Suisse pulled down mining and energy stocks. The benchmark S&P/ASX 200 Index shed 1.5 percent to finish at 69,65.50, while the broader All Ordinaries Index settled 1.5 percent lower at 7,152.70.

Woodside Energy Group and Worley both fell over 5 percent after oil prices plunged by nearly 5 percent overnight on recession fears.

Mining heavyweights BHP and Rio Tinto lost 4-5 percent. IP law business IPH plunged 10.6 percent after it was hit by a cyberattack.

Australian employment rebounded strongly in February, while the jobless rate fell back to near 50-year lows, data showed earlier in the session.

Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 Index gained 0.7 percent to end at 11,699.02 as weak GDP data suggested less urgency for RBNZ rate hikes.

U.S. stocks ended mixed overnight as banks continued to feel the brunt of selling pressure on concerns over the ripple effect of the SVB meltdown.

On the economic front, U.S. retail sales fell modestly in February in line with expectations and producer prices unexpectedly declined in the month, while a measure of New York manufacturing fell more than expected in March, separate reports showed.

The Dow shed 0.9 percent and the S&P 500 declined 0.7 percent, while the tech-heavy Nasdaq Composite finished marginally higher, tracking lower yields as investors dialed back expectations of Fed rate hikes.

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