Asian Shares Plunge Amid US Bank Jitters, Fed Anxiety

(RTTNews) - Asian stocks tumbled on Friday amid concerns about the health of the U.S. banking sector and anxiety ahead of the all-important U.S. jobs data due later in the day that could set the tone for the U.S. rates outlook.

Silicon Valley Bank shares plunged 60 percent overnight after the tech-focused U.S. bank said it would raise $US2 billion in additional capital to offset losses on bond sales, raising concerns about its solvency.

Earlier in the week, crypto-focused U.S. bank Silvergate said it would wind down operations following a bank run prompted by regulatory concerns.

The Japanese yen weakened after the Bank of Japan maintained its easy-money policy, as widely expected.

Gold edged up slightly on fears of an economic downturn or recession, while oil prices fell about 1 percent to extend declines for a fourth day running on demand concerns.

Treasury yields eased after data showed the number of Americans filing new claims for unemployment benefits increased more than expected last week.

Chinese shares fell sharply, with the benchmark Shanghai Composite ending down 1.40 percent at 3,230.08. Hong Kong's tech-heavy Hang Seng index slumped 3.04 percent to close at 19,319.92.

Japanese stocks fell the most in three months, with banks and insurers suffering heavy losses as the country's central bank kept its controversial yield curve control program unchanged ahead of a leadership transition in April.

The Nikkei average gave up 1.67 percent to close at 28,143.97, snapping a five-day winning streak. The broader Topix index ended 1.91 percent lower at 2,031.58.

Resona Holdings plummeted 7.5 percent and Mitsubishi UFJ Financial Group shed 6.1 percent. Seven & i Holdings tumbled 5.9 percent after the retail giant announced it would close a quarter of its main supermarket and general merchandise outlets.

Japan producer prices rose last month but the pace of increase slowed from the previous month due to slowing energy cost rises, central bank data showed earlier in the day. Separate data revealed Japanese household spending fell 0.3 percent in January from a year earlier.

Seoul stocks ended lower as data showed the country logged a record high current account deficit in January. The Kospi average finished 1.01 percent lower at 2,394.59 on lingering fears over faster rate hikes by the U.S. Federal Reserve.

Australian markets suffered their worst drop since September, with miners and financials leading losses.

The benchmark S&P/ASX 200 index fell 2.28 percent to 7,144.70, marking an eight-week low. The broader All Ordinaries index settled 2.21 percent lower at 7,348.20.

Piedmont Lithium slumped 6.3 percent after responding to a critical report by a short seller, Blue Orca Capital.

Origin Energy rose 2.5 percent on reports that Brookfield Asset Management and EIG Partners could submit a binding $18.2 billion takeover offer for the energy retailer as early as next week.

Across the Tasman, New Zealand's benchmark S&P NZX-50 index dropped 0.84 percent to 11,727.04.

U.S. stocks tumbled overnight as Silicon Valley Bank's surprise decision to sell much of its bond portfolio at a loss prompted concerns about the value of U.S. banks' bond portfolios.

The Dow fell 1.7 percent to its lowest closing level in four months while the tech-heavy Nasdaq Composite lost 2.1 percent and the S&P 500 shed 1.9 percent.