Asian equities are expected to open lower on Wednesday after Wall Street‘s de-risk amid fears over First Republic Bank, whose shares plummeted by up to 44% in recent trade, impacting major global equity markets. The USD and US Treasuries could serve as risk barometers as the risk-off price action accelerated gains, driven by safe-haven demand amid concerns over the banking sector and trade tensions. First Republic Bank’s recent report of an exodus in deposits and its plan to offload $100 billion worth of assets due to a lack of sustainable funding has added to the anxiety.
Moreover, Chinese equities could also face headwinds due to worsening trade tensions between the US and China, which continue to weigh on market sentiment. Recent reports suggest that the US has requested South Korean firms not to backfill chip orders to China if US-listed firms are barred access to China, adding further to the uncertainty.
