Investors are still evaluating the impact of the banking lowers in the United States and Europe, and as a result, the markets in Asia-Pacific were mixed on Monday.

After the German lender’s credit default swaps increased, there were lingering concerns of contagion from the banking sector’s turmoil, which contributed to a selloff of Deutsche Bank’s shares listed in the United States at the week’s end.

Outline

Hong Kong’s Hang Seng record plunged 1.67%, and the Hang Seng Tech file fell 2.83% in its last exchange hour. The Shanghai Composite fell 0.44% to 3,251.4 on the mainland, while the Shenzhen Component gained 0.22% to 11,647.93.

The S&P/ASX 200 in Australia gained 0.1% to close at 6,962.2, while the Nikkei 225 in Japan gained 0.33 percent to close at 27,476.87, and the Topix closed 0.33 percent higher at 1,961.84.

The Dow Jones Industrial Average is up 1.2% week-to-date. And the S&P 500 and Nasdaq Composite are up 1.4% and 1.7%, respectively, after Wall Street’s Friday session. After its credit default swaps rose, Deutsche Bank’s U.S.-listed shares fell sharply on Friday.

Craig stated that even though banks are robust, a “sense of risk across some of the financial markets is likely to remain, particularly in the banking sector.”

End Note

According to Kerry Craig, Global Market Strategist at JP Morgan Asset Management, the market will pressure bank stocks soon. As they continue to “probe any signs of weakness to see if they push hard enough, things will break.”