Asian shares nervous about Fed pivot and banking sector

PacWest Bancorp reported financial difficulties, reminding investors of the precarious health of US regional banks. Although the Fed raised interest rates, stock markets suffered and the yen rose as investors factored in a likely pivot rather than an end to rate rises. The Fed's rate increase and potential further moves are being influenced by a range of factors, including the impact of the Silicon Valley Bank and Signature Bank collapse, the resolution of a political standoff over the US debt ceiling and inflation. Investors lack confidence over the economic outlook and fears are spreading across the wider banking system.