Shares in Asian markets declined on Friday morning as concerns of an impending recession mounted as banking instability faces global markets. Investors are exhibiting concerns over the departure of clients following the collapse of Silicon Valley Bank and Signature Bank; the second and third-largest U.S. banking failures in history.
Japan’s Nikkei 225 index traded 0.1% lower at 27,385.25 while Hong Kong’s Hang Seng index sunk 0.8% to 19,885.45. China’s Shanghai Composite index edged 0.1% lower to 3,265.55 while Seoul’s Kospi fell by 0.4% to 2,414.96.
U.S. market sentiment differed from its Asian counterparts with stocks rebounding after a significant decline the day before. Thursday’s fall came after the Federal Reserve indicated that while it may be approaching the end of its interest rate hikes, no rate cuts could be expected this year as things stand.
The S&P 500 gained 0.3%- its first gain in four days – to close at 3,948.72 while the Dow Jones Industrial Average rose 0.2% to 32,105.25. The tech-heavy Nasdaq Composite Index increase 1% to 11,787.40 following a spike in technology shares.