Global financial stocks have lost $US465 billion ($700b) in market value so far as investors cut exposure to lenders from New York to Japan in the wake of Silicon Valley Bank’s collapse.

Losses widened early Tuesday, with the MSCI Asia Pacific Financials Index dropping as much as 2.7 per cent to the lowest since November 29. Mitsubishi UFJ Financial Group slid as much as 8.3 per cent in Japan, while South Korea’s Hana Financial Group fell 4.7 per cent and Australia’s ANZ lost 2.8 per cent.