Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Asian Stocks Down as China Evergrande Crisis Not Over Yet

Stock MarketsSep 23, 2021 10:06PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© 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
 

Related Articles

Puma hikes sales outlook despite supply challenges
Puma hikes sales outlook despite supply challenges By Reuters - Oct 27, 2021

BERLIN (Reuters) - German sportswear company Puma increased its 2021 sales outlook on Wednesday even as it cautioned that a coronavirus lockdown in Vietnam, port congestion and...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Mike Holden
Mike Holden Sep 23, 2021 10:14PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
"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." How they react is to shoot those in charge in the head and charge their family for the spent cartridge; I hope they have it to pay.
Benjamin McIntire
Benjamin McIntire Sep 23, 2021 10:14PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Ok champ
Fong SH
Fong SH Sep 23, 2021 10:14PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Mike, well, the Chinene government is in process of taking over the company, as this was discussed one week ago but it's been delayed because they have intention to break Evergrande into 4 parts. This is an isolated crisis inside China itself but the world chose to echo it worldwide lol, well, it's an excuse to bring down stocks around the world so that hedge funds can short. In this messy & uncertain period, all eyes are at Evergrande & at the same time, the chinese currency RMB is strengthening against the USD lol, could be a diversion. There's a chinese saying - kill one to respect (save) 100. We might all been spooked, we won't know yet, I am just guessing there's something huge, spectacular going to happen during China's national day 1st October. Cheers! Please stay safe and healthy when outdoors.
Matt Novakovich
Matt Novakovich Sep 23, 2021 10:13PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
that should have been over in like one day! just 1k to every Chinaman from the US with love
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
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.
Continue with Google
or
Sign up with Email