US banking contagion spreads to Asia

US banking contagion spreads to Asia

Asia’s leading stock index erased all of its gains for the year on Tuesday as bank stocks continued declines triggered by the collapse of a growing number of US financial establishments.

The MSCI Asia Pacific index fell 2.3%, with Japanese banks among the biggest drags on the market. The index is down more than 9% from this year’s high recorded in January, wiping out its gains for the year. The MSCI entered a bull market during the second trading week of the year, reflecting optimism from China’s reopening.

The Tokyo Stock Price Index (Topix) fell almost 3%, representing the biggest daily decline…