Wednesday, October 20, 2021

Asian Stocks Down as China Evergrande Crisis Not Over Yet

Must read

Stock Markets1 hour ago (Sep 23, 2021 10:06PM ET)

(C) Reuters.

By Gina Lee

Investing.com – Asia Pacific stocks were mostly down on Friday morning, as concerns about the impact from China Evergrande Group’s (HK:3333) financial woes still linger.

China’s Shanghai Composite edged down 0.17% by 9:57 PM ET (1:57 AM GMT) while the Shenzhen Component edged down 0.20%. Although investors breathed a sigh of relief as concerns over China Evergrande’s debt woes receded somewhat, it remains unclear if and how the developer will pay the more than $300 billion of liabilities that it owes. It also remains unclear how authorities will react to any potential default.

Hong Kong’s Hang Seng index fell 0.64%.

Japan’s Nikkei 225 jumped 1.73% after returning from a holiday. Data released earlier in the day said that the national core consumer price index (CPI) grew 0% year-on-year in August. The national CPI contracted 0.4% year-on-year and 0.2% month-on-month respectively.

The data also showed that the manufacturing purchasing managers index (PMI) for September was 51.2.

South Korea’s KOSPI inched up 0.04% while in Australia, the ASX 200 edged down 0.11%.

Investors were also optimistic that the U.S. Federal Reserve’s decision to start hiking interest rates in 2022 was a sign of confidence in the economic recovery from COVID-19. The central bank handed down its latest policy decision on Wednesday.

Clarity from the Fed has allowed risk assets to flourish, Loomis Sayles & Co. portfolio manager Elaine Stokes told Bloomberg.

“What they did is tell us that they feel really good about the economy.”

Fed Chairman Jerome Powell, Governor Michelle Bowman and Vice Chairman Richard Clarida are due to discuss the economic recovery from COVID-19 later in the day.

On the data front, inflation data released on Thursday was lower than expected. September’s U.S. manufacturing PMI was 60.5 and the Markit composite PMI was 54.5. The services PMI was 54.4.

However, should inflationary pressures continue, it will pose a risk to investors’ optimism if it reduces confidence in this economic recovery.

Across the Atlantic, the Bank of England (BOE) kept its interest rate unchanged at 0.10% as it handed down its policy decision on Thursday. BOE did keep the possibility of an interest rate hike in 2021 open, which pushed down 10-year gilts.

Asian Stocks Down as China Evergrande Crisis Not Over Yet

Analysis-For Xi and China Evergrande, a delicate balancing act
By Reuters – Sep 23, 2021

By Andrew Galbraith SHANGHAI (Reuters) – The crisis at property giant China Evergrande Group poses a $305 billion conundrum for President Xi Jinping: how to impose financial…

Asian stock markets jittery as China woes sap confidence
By Reuters – Sep 23, 2021

By Alun John HONG KONG (Reuters) – Asian shares were on edge on Friday hurt by persistent uncertainty around the fate of debt-ridden China Evergrande, even as more risk appetite…

China Evergrande shares slide 6% in early trade
By Reuters – Sep 23, 2021

HONG KONG (Reuters) – Shares of cash-strapped China Evergrande fell as much as 6% in early trade on Friday, paring gains of nearly 18% the previous day as time ticked by on an…

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning

(C) 2007-2021 Fusion Media Limited. All Rights Reserved

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Latest article

Subscribe to our newsletter

To be updated with all the latest news, offers and special announcements.