Three of the largest Japanese banks, Mitsubishi UFJ, Mizuho and Sumitomo Mitsui Financial Groupregistered this Tuesday heavy falls along with other Japanese entities in the sector in the first half of the negotiation in the tokyo stock exchange for fear of their exposure to bankruptcy Silicon Valley Bank (SVB).
The main index of the Tokyo Stock Exchange, the nikkeifell 1.91% in the mid-session break, after moderating a 2.6% drop in the morning, dragged down by nervousness in the banking sector.
He First Bank of Toyamabased in the center of the Japanese archipelago, plunged 8.76% in the half session, the third largest drop among companies in the main section (those with the largest capitalization in the local stock market). without it having been revealed if he has links with SVB or he also broke SignatureBank.
The company ACCESS, specialized in internet services, recorded the fourth largest drop at mid-morning, of 8.67%, after revealing that its US subsidiary IP Infusion has a capital deposit of about 11.6 million dollars in SVB.
Despite the fact that the company assured in a statement that it considers that the impact of this event on its performance and finances will be “insignificant”, investors reacted pessimistically.
The financial group Mitsubishi UFJ was the most traded company at the half-session break and fell 6.04%, closely followed by its competitor Sumitomo Mitsui, which lost 6.03%.
The asset management conglomerate Sumitomo Mitsui Trust -independent of the financial group of the same name, although with economic ties-, with a stake of around 2% in SVB, a drop of 4.17%.
Mizuho, another of Japan’s major banks, also fell 5.76%.
The technology group was also among the most traded and worst stopped companies of the day soft 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 the deposits and loans that the latter may have in the bankrupt financial institution, which would further impact its already punished portfolio.
Tokyo financial markets are among the worst responders the announcement over the weekend of the bankruptcy of the two US financial institutions, which although expected to have a limited impact in Asia, has raised concerns over reminiscences with the bankruptcy of Lehman Brothers.
The Japanese Finance Minister shunichi suzukistated that the Government of that country believes that the possibility of SVB’s bankruptcy affecting the Japanese financial system is low and that the United States authorities are taking measures.
US financial regulators have said they will take steps to ensure the protection of all insured deposits and customer repayments, but shareholders and some debt holders will not be protected.
(With information from EFE)
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