Asian Bank Stocks Drop to Two-Month Low on SVB Worries (1)

Shares of Asian banks slid to the lowest in more than two months, following their Wall Street peers lower on concerns that signs of trouble at a Silicon Valley-based lender could point to broader risks for the sector.

The MSCI Asia Pacific Financials Index dropped as much as 1.6% to the lowest since Jan. 3, the biggest drag on the broader regional benchmark on Friday. Japan’s Mitsubishi UFJ Financial Group Inc. declined as much as 3.3%, while Commonwealth Bank of Australia and South Korea’s KB Financial Group Inc. each fell 2.7%.

The drops were mild compared with the selloff ...