Japanese shares dropped sharply on the open, shedding 2.5 per cent within the first eight minutes of buying and selling as world markets reacted to a banking sector sell-off within the US.

The US regional financial institution rout was triggered by the collapse of technology-focused lender Silicon Valley Financial institution.

Futures in Hong Kong additionally pointed decrease, with contracts for the Grasp Seng index down 0.4 per cent.

South Korea’s Kospi was down 1.4 per cent 12 minutes after the opening bell.

The greenback declined 0.1 per cent in opposition to a basket of friends, whereas China’s renminbi rose 0.8 per cent to commerce at Rmb6.846 per greenback.