Japan's Topix falls 2%, leads losses in Asia as U.S. seeks to stem risk from Silicon Valley Bank - CNBC

Storm clouds are seen over the city skyline on October 01, 2021 in Sydney, Australia.

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Asia-Pacific markets fell on Monday as U.S. regulators announced plans to backstop both depositors and financial institutions associated with Silicon Valley Bank, seen as a move to stem further systemic risk.

Silicon Valley Bank last week was shuttered by regulators, after customers withdrew a staggering $42 billion of deposits by the end of Thursday.

In Japan, the Topix fell 2.19%, leading losses in the region as shares of Softbank saw a drop of more than 2% as investors continued to assess contagion fears. The Nikkei 225 fell 1.76%.

In Australia, the S&P/ASX 200 fell 0.68%, with banks continuing to see declines.

The Kospi dropped 0.75% and the Kosdaq was 1.73% lower as South Korean officials over the weekend reportedly voiced concerns of greater market volatility ahead from the collapse of Silicon Valley Bank.

Meanwhile, Hong Kong's Hang Seng index was up 0.68% and the Hang Seng Tech index rose 1.64%. In mainland China, the Shenzhen Component climbed 0.2% and the Shanghai Composite was up 0.36%.

The National People's Congress is slated to conclude with a scheduled press conference by newly appointed Premier Li Qiang.

Overnight, stock futures of the major US indexes jumped on Sunday evening after the backstop announcement, with the S&P 500 futures gaining 1.18% and Nasdaq 100 futures up 1.35%. Futures tied to the Dow Jones Industrial Average were also up by 277 points.

—CNBC's Jeff Cox, Tanaya Macheel, and Yun Li contributed to this report.

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Japan's Topix falls 2%, leads losses in Asia as U.S. seeks to stem risk from Silicon Valley Bank - CNBC
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