Key News
Asian equity markets were down as Silicon Valley Bank’s collapse and Credit Suisse’s troubles, despite a decisive move by the Swiss government, which led to a rebound this morning in European stocks, weighed on investor sentiment overnight except for India and the Philippines, which posted a small gain. These fears were well publicized in China as Ray Dalio’s comments of a “rolling crisis” and Larry Fink’s comments that more banks might fail weighed on sentiment.
Energy and materials were the worst performers in Hong Kong, down -3.33% and -3.17%, respectively, and China -3.73% and -2.46%. Today’s macro-driven sell-off is odd, considering that the Asia Dollar index and China’s renminbi (CNY) posted small gains versus the US dollar. In February, new home prices gained +0.3% month over month as the sector attracted policy support. No, I still can’t draw any investors to buy the bonds despite the government’s implied support despite near double-digit yields. I’ll give myself a pass due to the risk off environment. Remember, yesterday’s economic data was broadly stronger than anticipated, while the PBOC added liquidity to the financial system.
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