© Reuters File Photo: December 30, 2020 In the outbreak of coronavirus disease (Kovid-1) in Tokyo, Japan, a man stands in front of a screen showing the Nikkei stock average and the world’s stock index outside a broker. Reuters / EC Cut // File photo
By Scott Murdoch
HONG KONG (Reuters) – Asian stocks fell sharply on Tuesday as investors were upset over the unresolved debt crisis in China Evergrand Group and were keeping an eye on the potential impact of power shortages in China.
The MSCI Asia-Pacific stock index outside Japan was down 0.13% on Tuesday after a mixed session on Wall Street.
In early trade on Tuesday, the Australian benchmark S&P / ASX200 index was down about 1%, while closing 0.6%.
China’s blue chip index CSI300 rose 0.1% in the open, while Hong Kong rose 0.44%.
The future of Evergrand, the world’s most indebted property developer, is being forensically scrutinized by investors when the company failed to meet interest payments to offshore bondholders last Friday.
Evergrand has 30 days to pay before it defaults and Shenzhen authorities are now investigating the company’s asset management unit https://www.reuters.com/world/china/exclusive-china-evergrandes-wealth-management-arm- face- Local-Government-Investigation-2021-09-27
Not to mention Evergrand, the People’s Bank of China (PBOC) said in a statement posted on its website on Monday that it would “protect the legitimate rights of housing consumers”.
Meanwhile, the power shortage in China is increasing, the factory has stopped production https://www.reuters.com/world/china/chinas-power-crunch-begins-weigh-economic-outlook-2021-09-27 Apple Inc. (NASDAQ 🙂 And it is expected to hit Tesla (NASDAQ 🙂 Inc. and the country’s manufacturing sector and related supply chains.
Analysts have warned that ongoing blackouts could affect the country’s listed industrial stocks.
“What we are seeing with developers and blackouts in China will have a negative impact on Asian markets,” Hui, JP Morgan (NYSE 🙂 asset management’s Asian chief market strategist, told Reuters.
“Most people are trying to figure out the potential infectious effects with Evergrand and how far it can go. We’re monitoring policy responses and we’re starting to see some changes toward supporting home buyers that we’re expecting.”
On Wall Street, the.
As rising bond yields shift from growth in the U.S. to cyclical stocks, analysts expect long-term bond yields to be long-lasting.
U.S. Treasury yields hit a three-month high following last week’s move by the Federal Reserve, which touched 1.516% overnight so that royal stimulus could ease in early November.
U.S. investors are awaiting speeches from several senior senior Fed officials later this week, as well as monitoring any developments in China Evergrande, broker Ord Minute said in a note.
In Asian trade, the dollar rose nearly 0.1% with its performance in the international session on Monday after rising along with bond yields.
Gold was flat, while down 0.2%.