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Asia report: Markets mixed as investors hold breath over Evergrande bond

By Josh White

Date: Thursday 23 Sep 2021

Asia report: Markets mixed as investors hold breath over Evergrande bond

(Sharecast News) - Markets in Asia were in a mixed state at the close on Thursday, as investors continued to monitor developments around embattled property development giant China Evergrande.
Markets in Japan were closed for the Autumnal Equinox holiday, as the yen strengthened 0.01% on the dollar to last trade at JPY 109.77.

On the mainland, the Shanghai Composite was up 0.38% at 3,642.22, and the smaller, technology-heavy Shenzhen Composite rose 0.46% to 2,451.36.

South Korea's Kospi was down 0.41% at 3,127.58, while the Hang Seng Index in Hong Kong advanced 1.19% to 24,510.98.

Traders in the special administrative region were returning from a holiday on Wednesday, and sent shares in China Evergrande rocketing 18.62%, clawing back from several sessions of losses.

Evergrande's share price was still down more than 80% for the year to date, however.

The company's chairman told shareholders on Thursday that the company's top priority was ensuring wealth investors could redeem their returns, according to Reuters.

It still had not paid interest due on a dollar-denominated bond by the end of trading in Hong Kong on Thursday, however, with questions remaining over whether it would do so by the end of the global day.

The blue-chip technology stocks were mixed in Seoul, meanwhile, with Samsung Electronics up 0.26%, while SK Hynix closed down 1.4%.

"Asia markets have seen a continued recovery, with Chinese real estate companies also rebounding, along with Evergrande, although we still have no news about the US dollar interest payment," said CMC Markets chief market analyst Michael Hewson at the end of the region's session.

"The optimistic mood in Asia looks set to ripple out into today's European open with another positive start.

"With the Federal Reserve out of the way, attention now turns to the Bank of England and whether we will see a change of stance when it comes to the bond buying programme."

Oil prices were lower as the region went to bed, with Brent crude last down 0.14% at $76.08 per barrel, and West Texas Intermediate losing 0.22% at $72.07.

In Australia, the S&P/ASX 200 rose 1% to 7,370.20, while across the Tasman Sea in New Zealand, the S&P/NZX 50 managed gains of 0.68% to 13.305.92.

The down under dollars were both stronger on the greenback, with the Aussie last ahead 0.64% at AUD 1.3723, and the Kiwi advancing 0.59% at NZD 1.4195.

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