Following the collapse of three major US financial institutions in less than a week, Asia’s leading stock index lost all of its gains for the year as bank stocks continued to hemorrhage.

The MSCI Asia Pacific index dropped 2.3%, as Japanese banks sapped the market. The index was 9% off its high this year, recorded in January, as it lost all of its gains for the year. The MSCI had enjoyed a bull market in the second week of the year, surging ahead as optimism from China’s reopening buoyed investor sentiment.

The Tokyo Stock Price Index (Topix) dropped nearly 3%, marking the largest daily loss in over five months, as the MSCI ASEAN Index dropped 9.8% from its January high.

Frank Benzimra, head of Asia equity strategy at Societe Generale said that Asia was reacting “to growing risks of a US recession happening earlier than previously expected,”  adding that “cyclical markets such as Korea, Japan, and cyclical sectors and small caps tend to be more impacted in this context.”

Japanese bank stocks fell precipitously on Tuesday, as Tokyo-listed shares of Mitsubishi UFJ Financial Group fell 8.59%. Sumitomo Mitsui Financial Group lost 7.57%, Mizuho Financial Group was down 7.14% and tech-focused giant SoftBank Group fell over 4%.

IG analyst Yeap Jun Rong wrote in a note, “Concerns of a global economic rout continue to put pressure on the region, which are more value-focused.”