BEIJING — Asian stock markets tumbled Thursday after Wall Street sank as a plunge in Credit Suisse shares reignited worries about a possible bank crisis following the failure of two U.S. lenders.
Wall Street’s benchmark S&P 500 lost 0.7% on Wednesday after being down as much as 2.1% at one point following a 30% fall in Credit Suisse’s share price CS CSGN . That fueled jitters about global banks that are under strain from interest rate hikes by the Federal Reserve and other central banks to cool inflation.
The Shanghai Composite Index SHCOMP lost 0.8% to 3,234 after government data Wednesday showed the Chinese economy is recovering more slowly than expected following the lifting of anti-virus controls. Markets recovered some of their losses Wednesday after Switzerland’s central bank said it could provide some assistance to Credit Suisse “if needed.”Read: Credit Suisse gets liquidity promise, but Wall Street not ‘out of the woods yet’Credit Suisse has been fighting troubles for years, including losses from the 2021 collapse of investment firm Archegos Capital.
It's just like Wall Street to cause trouble, even when it's trying not to.