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The banking crisis caused by the collapse of the Silicon Valley Bank shakes the

stock markets of Asia-Pacific

.

Although officials from several governments in the region had stepped in on Monday saying they expected a limited impact on their markets, contagion hit Tuesday, with Asian stocks tumbling.

The banking collapse adds to that of the European banks and gives wings to a fear of global contagion.

Japan's benchmark Nikkei 225

index

fell nearly 2.0%, extending losses from the previous day.

Australia

's S&P/ASX 200

fell 1.6%.

South Korea

's Kospi

lost 1.9%, while

Hong Kong

's Hang Seng fell 1.2% and Shanghai's SSE Composite 0.7%.

In Tokyo,

Hirokazu Matsuno

, the main spokesman for the Japanese government, wanted to reduce concerns at a press conference, assuring that there were still no serious alarm signals about the country's banking sector.

But the biggest bankruptcy of a US bank in almost 15 years and the fear that this will have a devastating domino effect around the world, even more so after the other closure of Signature Bank, worries many analysts

in

the third world economy due to the strong investment in US bonds by Japanese lenders.

"Japanese banks have also increased investment in foreign debt over the past decade, as outgoing Bank of Japan Governor Haruhiko Kuroda

's aggressive monetary easing crushed

domestic yields," underscores an analysis from Bloomberg's Tokyo office. , which suggested that around $465 billion had been wiped from the market value of global financial stocks in three days.

With markets plunging on Tuesday, the region's banks have been hardest hit by contagion fears.

In Japan, Mitsubishi UFJ Financial and Sumitomo Mitsui Financial Group each lost more than 7%.

Hong Kong-listed HSBC plunged more than 3%, and South Korea's KB Financial Group 3%.

The entities of a large financial center such as Singapore were not spared either, with an average fall of around one point for the second day.

"So far, the authorities' measures have prevented a US run on deposits, but they have not been enough to prevent a run on investors," Rodrigo Catril

of

National Australia Bank, which fell on Tuesday, said in a statement.

more than 2%.

"The risk of a financial crisis remains high and investors have been quick to reduce their exposure to the sector," he continued.

In China, where the big annual legislative session has just been dismissed, the bankrupt SVB shared 50% of a bank with the state-owned

Shanghai Pudong Development Bank

: the SPD Silicon Valley Bank (SSVB), founded in 2012 as the first bank to shelter the country's technology companies, especially focused on the semiconductor and fintech sectors.

Instead, the SSVB rushed over the weekend to announce that its balance sheet was operating independently.

"The bank has a standardized corporate governance structure. As China's first technology bank, SSVB is committed to serving Chinese science and technology enterprises, and has always had sound operations in accordance with Chinese laws and regulations," they said in a statement, without disclosing what will happen to SVB's part of the joint venture.

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