Asian shares open slightly lower, Bitcoin rallies after Switzerland's UBS seals deal to acquire Credit Suisse

Asian share are steady in early Monday trade.

Richard A. Brooks/AFP/Getty Images

• Asian shares are down on Monday after UBS struck a deal to acquire Credit Suisse.
• ING economists said a relief rally is possible after Switzerland moved to contain the banking crisis.
• Investors are still looking to the Fed's interest-rate decision this week for further cues.

Asian shares are slightly lower early on Monday after Switzerland's UBS struck a deal to take over peer Credit Suisse. The deal values Credit Suisse at around $3.25 billion.

The development in Europe came after a wild week for the banking sector — Silicon Valley Bank was shut down by regulators on March 10, spurring jitters of a contagion that could lead to a broader economic crisis.

Japan's Nikkei 225 was 0.7% lower at last check, while Korea's Kospi edged down 0.2%. Australia's ASX200 was 0.9% lower and the Shanghai Composite Index was 0.2% higher.

Hong Kong's Hang Seng Index fell much sharply than other Asia Pacific indices — posting 2% in losses in its first hour of trade on Monday — but the index has been under pressure from China's slow economic recovery after the country lifted zero-Covid curbs in January.

S&P 500 futures were 0.4% higher.

Bitcoin rose 21.45% over the past 24 hours and is now trading above $27,600, according to CoinMarketCap.

The markets could rise on relief that Switzerland moved to prevent the banking crisis from spreading over the weekend, ING economists Robert Carnell and Iris Pang said in a note on Monday seen by Insider. 

Investors will also be keenly watching the Federal Reserve's interest rate decision for further cues, per the ING economists. The Fed is set to meet on Tuesday and Wednesday. The central bank's decision is keenly watched, as a year of aggressive interest rate hikes has dampened the stock markets.

"Initial reaction for the financial banks in the region to the UBS' buyout of Credit Suisse seems to point to more measured gains, suggesting a still-cautious environment as sentiments remain on hold for further developments in the banking space," wrote Yeap Jun Rong, a market strategist at IG, an online trading platform in a Monday note.

Read the original article on Business Insider

from Business Insider https://ift.tt/PO1Ugz8