Asian Markets Slide as U.S. Bank Woes Spur Flight to Saf

Asian stocks fell and Treasuries extended gains on Friday as fresh signs of stress at U.S. regional banks rattled investors, fueling bets on more Federal Reserve rate cuts and sending gold to a record high.

Zions Bancorp slumped 13% and Western Alliance 11% overnight, reviving fears of another banking flare-up. “Where there’s smoke, there’s fire,” said IG’s Tony Sycamore, noting the 2023 crisis left “a tinderbox for another banking shock.”

Safe-haven demand drove gold to $4,378.69 per ounce, up 8.5% for the week—its biggest jump since 2008—while Treasury yields hit three-year lows. The U.S. dollar weakened, lifting the yen and Swiss franc.

MSCI Asia-Pacific ex-Japan fell 1%, Nikkei dropped 1.5%, and Hang Seng lost 1.8%. Rising U.S.-China trade tensions and falling oil prices added to the gloom, with Brent down to $60.87 and WTI at $57.25