Asian stocks fall, Europe gains after Credit Suisse jitters

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European shares advanced Thursday following a retreat in Asia after Credit Suisse said it would borrow up to US$54 billion from Switzerland's central bank to shore up its finances, possibly easing worries about a bank crisis following the failure of two U.S. lenders.

London, Frankfurt and Wall Street futures gained. Shanghai, Tokyo and Hong Kong declined as Asian bank stocks slid, reversing Wednesday's gains. Oil prices rose.

The turmoil over banks will complicate a European Central Bank decision due to be announced Thursday about another possible interest rate hike, they said. It is "casting doubts on whether policymakers will raise rates at all," they said. The Hang Seng in Hong Kong shed 1.7% to 19,203.91. Standard Chartered Plc lost 5.4% and HSBC was 2.4% lower.

China's banks don't face the same pressures as foreign lenders because Beijing has held its benchmark lending rate steady since mid-2022 and keeps the country sealed off from global capital flows. State-owned Industrial & Commercial Bank of China, Ltd. and Bank of China, Ltd. were up 0.1%. Its share price plunge reignited worries about the global industry after Silicon Valley Bank and Signature Bank collapsed in the second- and third-biggest U.S. bank failures in history.First Republic Bank sank 21.4%, a day after soaring 27%. JPMorgan Chase slid 4.7%.

 

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