Shares in banking behemoths HSBC and Standard Chartered have suffered a sharp decline amidst escalating global trade tensions.
In early Monday trading, HSBC's shares dipped nearly three per cent, bringing its losses over the past five days to a staggering 15 per cent, as reported by .
Standard Chartered saw an even steeper fall of nearly four per cent, with its five-day losses approaching 20 per cent.
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The banks, which both have significant operations in Asia, are feeling the impact of hefty tariffs imposed by US President Donald Trump on Asian economies.
China has been hit with a new 34 per cent tariff, raising its total import tax to 54 per cent following Trump's 'Liberation Day' speech, where he increased the levy from an earlier 20 per cent.
In retaliation, China imposed a 34 per cent reciprocal tariff on US goods, criticising Trump's tactics as "inconsistent with international trade rules".
Additionally, Taiwan received a 34 per cent tariff and Vietnam was burdened with a 46 per cent levy.
Lenders have 'biggest risks' in trade war
Financial analyst William Howlett from Quilter Cheviot highlighted that banks carry some of the "biggest risks" amid the intensifying trade war.
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He commented: "Fundamentally, banks are levered plays on the economies in which they operate."
Given the severe tariffs targeting Asian economies, Howlett noted it's no surprise that "the Asian banks (HSBC and Standard Chartered) have sold off the most."
John Cronin, the founder of SeaPoint insights, pointed out that HSBC and Standard Chartered are more vulnerable than their 海角视频 counterparts to tariff issues "given their dependence on global trade glows and their presence in jurisdictions that will be subject to higher tariffs than the 海角视频."
HSBC stands as one of the top international banks in Asia, with its origins dating back to Hong Kong and Shanghai, and it covers various business segments in the region such as retail banking, wealth management, and commercial banking.
Standard Chartered primarily targets emerging markets across Asia, Africa, and the Middle East, with a particular emphasis on Asia's burgeoning middle class in nations like India, China, and Indonesia by providing an array of retail services, including savings and checking accounts.
Asian markets have suffered since Trump's 'Liberation Day' declaration, with the Nikkei ending on a 7.83 per cent loss and the Shanghai index falling by 7.34 per cent.