SVB - What's the impact on Asia?
As traders continue to assess the fallout from SVB’s collapse, IGTV’s Angeline Ong takes a look at what Asian countries are saying and which companies in the region could be affected.
SVB impact
While countries like India and China and Japan have said they do not see any material impact from SVB just yet, the reality is no one knows just how far SVB's tentacles go.
Asian banks
Asian banking stocks extended their declines earlier the week with Japanese firms hit particularly hard amid anxiety about systemic risk. Selling early in the week led to the Tokyo Stock Exchange banks index falling some 16%. It is the sharpest drops since the days after the 2011 earthquake and tsunami, which struck Japan.
Australia
Australia's productivity software maker, Nitro Software Limited has also declared it has around $12 million of its global cash reserves held on deposit with SVB. So where's the salad dressing? Well, US companies have disclosed around $5 billion in deposits implicated besides various credit facilities. Big names like Roku Inc, Roblox Corporation and online styling service, Stitch Fix Inc, all embroiled in this as well. In Europe, around 16 tech and life sciences companies have disclosed around $190 million in exposure to SVB. The thing about Asia is nobody really knows what the SVB impact is yet, but it will come to light pretty soon.
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