Modi and Trump Hold Phone Call as India Seeks Relief From U.S. Tariffs Over Russian Oil Trade 
China’s November Economic Data Signals Slowing Industrial Output and Weak Consumer Demand 
Indonesia–U.S. Tariff Talks Near Completion as Both Sides Push for Year-End Deal 
ASX Shares Slide After ASIC Imposes A$150 Million Capital Requirement 
U.S. Dollar Slides for Third Straight Week as Rate Cut Expectations Boost Euro and Pound 
U.S. Stock Futures Mixed as Tech and AI Stocks Face Pressure Ahead of CPI Data 
Japan Business Sentiment Hits Four-Year High, Boosting Expectations of BOJ Rate Hike 
Asian Currencies Hold Steady as Indian Rupee Slides to Record Low on Fed Outlook 
Dollar Struggles as Markets Eye Key Central Bank Decisions and Global Rate Outlooks 
China’s Small Bank Consolidation Struggles as Profits Fall and Risks Persist 
Australia’s Labour Market Weakens as November Employment Drops Sharply 
Asian Stocks Slide as Central Bank Decisions and Key Data Keep Investors Cautious 
Fed Rate Cut Signals Balance Between Inflation and Jobs, Says Mary Daly 
South Korea Extends Bond Market Stabilization Measures Amid Rising Financial Risks 
Gold Prices Slip Slightly in Asia as Silver Nears Record Highs on Dovish Fed Outlook 
Australian bank stocks took a breather on Monday after a brutal eight-session sell-off wiped over A$63 billion ($40 billion) from market value. The "Big Four" banks—Commonwealth Bank of Australia (CBA), National Australia Bank (NAB), Westpac, and ANZ—saw sharp declines, with some hitting multi-year highs before a downturn fueled by an interest rate cut, weak earnings, and rising bad debts.
Despite strong growth in 2023, boosted by superannuation funds and retail investors, the sector faced headwinds last week after the central bank cut interest rates for the first time since 2020. This, combined with concerns over loan arrears and margin contraction, triggered investor exits from overvalued stocks.
Financial stocks rose 0.8% on Monday but remained down over 7% since February 12, underperforming the ASX200’s 3% decline. CBA, the nation’s top lender, lost 10% in eight sessions, erasing A$25 billion in market value, despite reporting strong first-half profits on February 12. NAB, the leading business lender, snapped a six-day losing streak on Monday but remains down nearly 14%, losing A$18 billion in value after warning of borrower strain and rising defaults.
Westpac and ANZ also reported shrinking margins and increased impaired assets, shedding a combined A$19 billion. However, NAB and ANZ gained over 1% on Monday, while Westpac rose 0.6%.
Analysts at Macquarie warned that the long-expected "de-rating" of the banking sector may have arrived, as valuations remain high despite looming risks. With earnings upgrades slowing and interest rates impacting profitability, further downside pressure on bank shares remains a concern for investors.
