U.S.-traded shares of banks based in Asia and Australia traded sharply lower on Monday, taking a cue from their U.S. counterparts following personnel shake-ups at two major financial institutions.
The Bank of New York Asia ADR Index added 0.27 points to 164.25. ADRs, or American Depositary Receipts, are securities designed to allow U.S. investors to trade shares of companies based overseas.
Shares of Asia- and Australia-based banks were lower after Wachovia Corp. Chief Executive Ken Thompson was forced out Monday, while Washington Mutual Inc. stripped Chief Executive Kerry Killinger of his chairman title.
Thompson was third CEO of a major U.S. financial institution to lose the top job due to the credit crisis.
Meanwhile, credit ratings agency Standard & Poor's Corp. downgraded U.S. financial institutions Merrill Lynch & Co., Lehman Brothers Holdings Inc. and Morgan Stanley. It also revised Banc of America Corp. and JPMorgan Chase & Co.'s outlooks to negative, meaning a downgrade may be forthcoming.
India's HDFC Bank Ltd. lost $5.38, or 5.4 percent, to $94.37. ICICI Bank Ltd. shed $2.34, or 6.2 percent, to $35.39. Australia-based Westpac Banking Corp. declined $4.91, or 4.4 percent, to $106.59.
South Korea's Woori Finance Holdings Co. shed $1.89, or 3.3 percent, to $55.26. Kookmin Bank, also based in South Korea, gave up 65 cents to $61.80.
Bucking the trend, Japanese banks were higher. Mizuho Financial Group Inc. added 57 cents, or 5.4 percent, to $11.06. Mitsubishi UFJ Financial Group Inc. climbed 37 cents, or 3.7 percent, to $10.52.
The Bank of New York Composite ADR Index lost 1.88 points, or 1 percent, to 180.96.
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