Asia witnesses limited contagion risk from Silicon Valley Bank's woes

While bank shares in Asia and the US are trading at almost similar accounting book value-based valuations, the former is expected to boost earnings by 29% over the next 12 months

Asian bank shares fell in reaction to the crisis at SVB Financial Group, but the region will likely face limited contagion risk due to superior growth prospects, lenders’ diverse customer base, and improving asset quality.
 

That’s the view of market participants after the drop in region’s lender shares alongside Wall Street peers on concerns that signs of trouble at a key Silicon Valley-based lender may signal broader risks. But the declines in Asia were milder, with the MSCI Asia Pacific Financials Index falling as much as 2.6% compared with a 8.1% tumble in the KBW Bank Index of US lenders.