Asian markets start the week with gains but their eyes on Evergrande
HONG KONG, China – Stock markets rose on Monday after a largely positive Wall Street advance, as investors kept a nervous eye on the development of the crisis at struggling Chinese real estate giant Evergrande as he is on the brink.
Hong Kong has been one of the best-performing countries when it comes to discount buying after suffering a boom last week, although traders were still unsure whether Evergrande paid interest on an offshore bond that was to be paid last Thursday.
While concerns about an economically catastrophic collapse of the company have subsided for the time being, analysts have warned that there is still a long way to go before the markets are out of the woods.
Reports released over the weekend said Chinese authorities had ordered local housing officials to put the company’s money into ring-fenced accounts to ensure it was used to pay for construction projects.
Observers said the move showed homeowners were a priority for the government as it tried to temper social anger.
However, Beijing has remained largely silent on the crisis, leaving many to guess what its plans are.
At the start of the exchanges, Hong Kong, Sydney, Seoul, Singapore, Wellington, Manila and Jakarta were all in positive territory, although Shanghai dipped.
Tokyo rose, days before a leadership election for the ruling party in Japan to replace Prime Minister Yoshihide Suga, with optimism the winner will push for a huge new stimulus package for the stammered economy.
Still, Shane Oliver, at AMP Capital, warned: “Global fears about the Evergrande contagion have abated a bit, but it’s too early to be clear.
“Equities remain vulnerable to short-term volatility.”
The bullish start to the week follows gains by the S&P 500 and the Dow Jones in New York, where brokers followed the Federal Reserve’s plan to begin cutting its ultra-accommodative monetary policy.
However, the failure of U.S. lawmakers to raise the debt ceiling to pay their bills is causing growing concern, endangering a default that several people, including Treasury Secretary Janet Yellen, say would cause economic disaster.
The row comes as Republicans oppose Joe Biden’s multibillion-dollar Build Back Better program that would invest in climate change policy, cut child care and education costs for families that work and would create millions of jobs.
The euro barely moved against the dollar as general elections in Germany – Europe’s largest economy – ended with the two main parties fighting to form a government, plunging the country into a period of uncertainty and leaving open the question of who will succeed Angela Merkel. .
And bitcoin was hovering around $ 44,000, having largely recovered over the weekend from a drop below $ 40,000 in response to news that China now considers all financial transactions involving cryptocurrencies, sounding the death knell for the country’s digital commerce.
Meanwhile, Brent oil prices have jumped to around three-year highs at just under $ 80 a barrel amid concerns about tight supply as demand recovers as markets reopen. savings after the pandemic.
Key figures around 03:00 GMT
Tokyo – Nikkei 225: UP 0.4% to 30,358.62 (pause)
Hong Kong – Hang Seng Index: EN up 1.2% to 24,472.26
Shanghai – Composite: DOWN 0.3% to 3,601.19
Dollar / yen: LOWER to 110.62 yen from 110.73 yen at 9:00 p.m. GMT on Friday
Euro / dollar: DOWN to $ 1.1720 from $ 1.1725
Pound / dollar: DOWN to $ 1.3670 from $ 1.3674
Euro / pound: DROP to 85.73 pence against 85.64 pence
West Texas Intermediate: EN up 1.4% to $ 74.98 per barrel
North Sea Brent: Up 1.3% to $ 79.13 per barrel
New York – Dow: UP 0.1% to 34,798.00 (close)
London – FTSE 100: DOWN 0.4% to 7,051.48 (close)
Subscribe to our commercial newsletter
Subscribe to INQUIRER PLUS to access The Philippine Daily Inquirer and over 70 other titles, share up to 5 gadgets, listen to the news, download from 4 a.m. and share articles on social media. Call 896 6000.