Shares fell across Asia-Pacific as oil prices stayed close to a fresh high of $120.30 a barrel. Banks were unnerved by falls in profit from lenders in Australia and South Korea, and advice from an analyst that Bank of America should “completely walk away” from a deal to buy Countrywide Financial, one of the biggest victims of the subprime crisis, for $4bn. Japan was closed for a public holiday for the second day in a row.

Oil dropped slightly below $120 in Asian trading Nymex light sweet oil was 4 cents lower at $119.93 per barrel for delivery in June by late afternoon in Singapore. Gold was 0.04 per cent higher at $874.55 per troy ounce for immediate delivery.