NEW YORK/HONG KONG: China Evergrande Group, once China's top-selling property developer, inched closer to a key deadline where it risks a default on its bonds, but world markets were calmer as investors and analysts played down the threat of its troubles becoming the country's "Lehman moment."
While concerns about the spillover from a messy collapse roiled markets on Monday, U.S. stocks were flat on Tuesday. The U.S. dollar held relatively steady and the U.S.'s corporate bond market steadied.
"There's been a fair bit of concern about the possibility of contagion from the meltdown at Chinese property developer Evergrande," analysts at New York-based Bespoke wrote in a research note on Tuesday.Read More »
TOKYO: Concern that China Evergrande may default on its mountain of debt hit shares of toilet maker Toto and other Japanese firms that are seen vulnerable to a further slowdown in China's property development.
Toto lost 6.1 % on Tuesday, extending its fall since Thursday to 14.8%, on the perceived risk of exposure to Evergrande, which investors fear could miss debt payment later this week.
"There are rising and widely reported concerns about fund flows at leading local developer China Evergrande Group, whose business scale suggests to us it is very likely one of TOTO's major customers," said Arisa Katsuyama, analyst at Morgan Stanley.
"Year-to-date debt defaults by real estate companies in China, not just China Evergrande, already exceed the cumulatRead More »
SINGAPORE: Asian stocks struggled to shake off contagion fears on Tuesday and selling pressure persisted amid concern that troubles at indebted developer China Evergrande could ripple across the world economy, markets and financial system.
Hong Kong's Hang Seng hit a fresh 11-month low and was down 0.3% by midsession, with a early gains in banks and property stocks paring a little. Japan's Nikkei returned from a market holiday with a drop of almost 2%.
Currency, commodity and bond markets steadied, but overall demand for riskier assets remained low especially as the Federal Reserve is expected to step closer to tapering on Wednesday.
European futures rose 0.5% in the Asia session. FTSE futures advanced 0.7% and S&P 500 futures climbed 0.6% a dayRead More »
BENGALURU: Asian shares skidded and the dollar firmed on Monday ahead of a week packed with global central bank meetings, with a torrid session for the world's most indebted property developer China Evergrande dragging Hong Kong stocks to a near one-year low.
Holidays in Japan, China and South Korea kept trading thin, and politics added extra uncertainty with elections in Canada and Germany bookending the week.
Shares of China Evergrande plummeted over 15% after earlier losing as much as 19% to over 11-year lows. Its listed units also fell, as investors worried about the real estate developer's ability to repay a small portion of its $305 billion debt due this Thursday.
Evergrande's troubles added to growing concerns about the health of China's econRead More »