Shares in Asia-Pacific were mixed in Tuesday trade as investors continued monitoring the situation surrounding embattled developer China Evergrande Group.
Japanese stocks declined as they returned to trade following a Monday holiday. The Nikkei 225 closed 2.17% lower at 29,839.71 as shares of conglomerate Softbank Group plunged 4.98%. The Topix index shed 1.7% on the day to 2,064.55.
Hong Kong’s Hang Seng index, which was dragged down by more than 3% on Monday amid investor fears around Evergrande, sat 0.17% in Tuesday afternoon trade.
S&P 500 futures rose 0.3% following the index's (.SPX) biggest fall in two months overnight and the Chinese yuan rebounded in offshore trade to recover Monday losses.
Markets in mainland China and Taiwan were still closed on Tuesday while Korean markets remain shut through Wednesday.
Investors fear a messy collapse or liquidation at Evergrande could ripple through China's property sector at a time when growth in the world's second-largest economy is already looking fragile.
In Australia, the S&P/ASX 200 advanced 0.35% on the day to 7,273.80.
MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.11% lower.
Airline stocks rise
Airline stocks in Asia-Pacific rose after the U.S. announced a plan to ease travel restrictions for international visitors who are vaccinated.
Qantas Airways shares in Australia gained 2.23%. In Japan, shares of Japan Airlines jumped 4.47% while ANA Holdings advanced 2.53%.
Elsewhere, Singapore Airlines’ stock in Singapore gained 2.71% in afternoon trade, while Hong Kong-listed shares of Cathay Pacific jumped 2.69%.
· China Evergrande fears grip markets as Beijing stands back, for now
The risks of China Evergrande Group defaulting on its mountain of debt loomed large over nervous markets on Tuesday, as investors looked for signs of intervention by Beijing to stem any potential domino effect across the global economy.
Investors in Evergrande, however, remained on edge.
Its shares were sold-off again on Tuesday, fell as much as 7%, having tumbled 10% in the previous day on fears its $305 billion in debt could trigger widespread losses in China’s financial system in the event of a collapse.
· European markets open higher despite nerves over China; Fed meeting ahead
The pan-European Stoxx 600 index opened 0.4% higher with all sectors in positive territory, apart from healthcare stocks.
The rebound for European stocks comes after markets got off to a poor start to the week, closing lower on Monday amid investor fears surrounding embattled property developer China Evergrande Group and concerns about the contagion risk for the wider Chinese and global economy.
· S&P downgrades Chinese developer Sinic due to unclear repayment plans
Credit-rating firm S&P Global Ratings downgraded Sinic Holdings (Group) Co Ltd to ‘CCC+’ on Tuesday, citing the Chinese developer’s failure “to communicate a clear repayment plan”.
· Washington gridlock and a debt ceiling showdown are weighing on the market
Strategists said the renewed sell-off in U.S. markets on Monday is in part thanks to partisan gridlock in Congress over the debt ceiling and government shutdown.
House Speaker Nancy Pelosi, D-Calif., said Monday that the House will this week pass a government funding bill and a debt ceiling suspension.
The bigger hurdle is likely the Senate, where lawmakers will need to muster 60 votes to pass such a bill that isn’t tied to the separate reconciliation legislation.
· Jim Cramer says he sees no reason to buy the stock market dip just yet
CNBC’s Jim Cramer said Monday he expects the selling on Wall Street to continue, suggesting investors wait before buying and taking advantage of the pullback in stocks.
“Mindless dip-buying has been a great strategy for the past 15 months, but it’s worthless in the face of a serious sell-off, which is what we have now,” the “Mad Money” host said.
“I’ve been encouraging you to sell ahead of what’s usually the weakest time of year. I can’t turn positive until I find an actual reason to change my mind. For the moment, we’re not getting any,” he added. “So, please, if you want to be a buyer, find a reason to buy. Let the pain of late September unfold before you try to pull the trigger.”
Reference: Reuters, CNBC
Thai
Eng