:quality(85)//cloudfront-us-east-1.images.arcpublishing.com/infobae/PZDRPN5Y3FO5LI6FBPYF65QGC4.jpg "The Tokyo Stock Exchange posted sharp declines on fears of the impact on the financial sector of the collapse of Silicon Valley Bank 1")
Three of Japan’s largest banks, Mitsubishi UFJ, Mizuho and Sumitomo Mitsui Financial Groupregistered this tuesday heavy falls with other Japanese entities in the sector in the first half of the negotiation in the tokyo stock exchange for fear of risking bankruptcy Bank of Silicon Valley (SVB).
The benchmark Nikkei 225 lost 2.19%, or 610.92 points, to close at 27,222.04 points, driven by the nervousness of the banking sectorwhile the Topix of all stocks fell 2.67%, to 1,947.54 points.
Other Asian exchanges also reacted fearing possible contagion from the collapse of the Californian bank. Hong Kong’s Hang Seng Index fell 2.27%. In China, the Shanghai Composite Index fell 0.72%, while the Shenzhen Composite Index lost 0.98%.
He Toyama First Bankbased in the center of the Japanese archipelago, plunged 8.76% in half-session, the third largest drop among companies in the main section (those with the largest capitalization on the local stock market). without it being revealed if he has any links to SVB or it also broke Signature Bank.
The company ACCESS, specializing in internet services, recorded in the middle of the morning the fourth largest drop, of 8.67%, after revealing that its American subsidiary IP Infusion held a capital contribution of around 11.6 million. dollars in SVB.
Although the company assured in a press release that it considers the impact of this event on its performance and finances to be “insignificant”, investors reacted with pessimism.
Financial group Mitsubishi UFJ was the most traded company at the half-session break and fell 6.04%, closely followed by rival Sumitomo Mitsui which lost 6.03%.
The asset management conglomerate Sumitomo Mitsui Trust -independent of the financial group of the same name, although having economic ties-, with a stake of around 2% in SVB, a decrease of 4.17%.
Mizuho, another of Japan’s big banks, also fell 5.76%.
The technology group was also among the most traded and worst arrested companies of the day Software bankthe stock with the highest market capitalization in Tokyo, which it was devalued in the first tranche of the session by 3.67%.
Softbank is not directly linked to SVB, but its huge investments in technology companies through its funds have raised concerns about the future of deposits and loans that the latter may have in the bankrupt financial institution, which would further impact his already punished portfolio.
Tokyo financial markets are among the worst responders the announcement this weekend of the bankruptcy of the two American financial institutions, which, although expected to have a limited impact in Asia, raised concerns about the reminiscences with the bankruptcy of Lehman Brothers.
Japan’s finance minister Shunichi Suzukisaid that the government of that country believed that the possibility that the bankruptcy of SVB would affect the Japanese financial system was low and that the American authorities were taking action.
US financial regulators have said they will take steps to ensure protection for all insured deposits and customer refunds, but shareholders and some debt holders will not be protected.
(With information from EFE)
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