Shares in Japan’s largest banks fell sharply yesterday on concerns about their subprime exposure. Analysts warned of further write downs across the Asian banking sector, but on a much more limited scale than in the US and Europe. Financial Times

The fears were triggered by reports that Mitsubishi UFJ would suffer more substantial sub-prime related losses than the Y23bn ($214m) in unrealised losses it has already posted.

MUFG, Japan’s largest bank, admitted that the subprime market woes had raised the likelihood of bigger losses, but insisted the impact would remain limited.