Asia markets mostly down as investors weigh Yellen remarks on banks

Hong Kong Monetary Authority Chief Executive Eddie Yue said Hong Kong was seeing “little impact” from the fallout from the turmoil in the global banking sector.

“I would say that recent events in the US and Europe have had very little impact on Hong Kong,” Yue said at a briefing, adding that Hong Kong banks have “very limited exposure to all the banks featured now in the newspapers.” without being named.

Noting that the situation has “substantially stabilized,” Yue emphasized that he will monitor potential changes in the future.

“Liquidity has been extended, but if there are further changes, we need to monitor,” Yue said. “We, of course, the banks in Hong Kong or the banks around the world have to prepare if there is going to be more volatility coming into the market,” he said.

– Vivian Kam, Jihye Lee

Australian services and factory activity are expected to fall into recession territory in March, based on Juno Bank estimates.

The manufacturing purchasing managers’ index in March came in at 48.7, while the services PMI came in at 48.2, down from 50.5 and 50.7 in February, respectively.

A PMI above 50 indicates expansion, while a reading below 50 indicates a contraction in growth.

The bank noted weak demand that led to lower business activity. This is due to higher interest rates, still high inflation and weaker economic conditions, which have affected new business for both Australian goods and services.

— Lim Hui Jie

Japan’s core inflation reading eased from its January peak of 4.2% to 3.1% year-on-year in February, government data showed on Friday.

The reading matched the expectations of economists polled by Reuters.

Overall, nationwide inflation was at 3.3% for the month compared to a year ago, also lower than January’s print of 4.3%.

The economy’s consumer price index excluding fresh food and energy also rose 3.5% for the month year-on-year.

— Jihye Lee

Treasury Secretary Janet Yellen said Thursday that federal emergency actions used to backstop customers of Silicon Valley Bank and Signature Bank could be used again if necessary.

“We used important tools to move quickly to prevent contagion. And they are tools we can use again,” Yellen said in written testimony before the House Appropriations subcommittee.

“The strong actions we have taken ensure that Americans’ deposits are safe,” he added. “Certainly, we will be prepared to take further actions if necessary.”

His comments come as regulators seek to reassure customers and investors amid a banking crisis promoted by the closing of Silicon Valley Bank.

— Alex Harring, Christina Wilkie

Jobless claims unexpectedly fell last week, pointing to a labor market that remains very tight.

Initial filings for unemployment insurance totaled 191,000 for the week ended March 18, below estimates for 198,000, the Labor Department reported Thursday. That is a decrease of 1,000 from the previous period.

Continuing claims, which run a week behind, rose 14,000 to 1.694 million.

Stock market futures fell following the data release.

—Jeff Cox

Some investors are returning to bank stocks after last week’s selloff, but fund manager Ian Mortimer is staying clear.

In fact, he has never owned bank stock in any of his funds. He revealed why on CNBC Pro Talks.

Pro subscribers can read more here.

Wall Street is downgrading European banks after sector stresses led to the emergency merger of two big Swiss banks.

Two investments also upgraded another sector and named a dozen stocks to own “in case markets turn sour”.

CNBC Pro subscribers can read more here.

— Ganesh Rao