Asia-Pacific stocks mostly fell as concerns over Evergrande’s debt weigh on sentiment

Major Asia-Pacific stock indices ended mixed but mostly down on Friday as investors continued to approach trade with caution amid lingering risks surrounding the China Evergrande group. Meanwhile, investors in Japan turned the tide, pushing the Nikkei benchmark higher on strong gains from Fast Retailing and Softbank Group.

Japan’s Nikkei Index stood at 30,248.81 on Friday, up 609.41 or + 2.06%. Hong Kong’s Hang Seng Index closed at 24,192.16, down 318.82 or -1.30% and South Korea’s KOSPI index closed at 3,125.24, down 2.34 or -0.07%.

In China, the Shanghai index stood at 3,613.07, down 29.15 or -0.8% and in Australia, the S & P / ASX 200 index ended at 7,342.60, down 27.60 or -0.37%.

Evergrande remains silent on its $ 83 million bond interest payment, leaving investors in limbo

Chinese real estate developer Evergrande has not said whether it will meet its interest payments on its US dollar bond – a key step investors are watching, CNBC reported.

The interest payment due Thursday was $ 83 million. It was a $ 2 billion dollar-denominated bond that was due to mature in March 2022. Dollar bonds are typically held by foreign investors.

On Friday morning, during business hours in Asia, the company had made no announcements or deposits with the Hong Kong Stock Exchange, leaving investors in limbo.

Evergrande has another coupon payment due on Wednesday – a 7-year U.S. dollar-denominated bond maturing in March 2024, according to data from Refinitiv Eikon.

For the rest of the year, Evergrande has interest payments due each month in October, November, and December.

China urges local authorities to prepare for ‘possible storm’ if Evergrande fails ~ Wall Street Journal

Chinese officials have asked local authorities to prepare for the potential demise of heavily indebted real estate developer Evergrande, the Wall Street Journal reported on Thursday. Bloomberg also reported Thursday that authorities in Beijing had asked the company not to default on those dollar-denominated interest payments.

Local officials described the signals from Chinese authorities as “preparing for a possible storm” and said the government told them they should only intervene at the last minute to avoid fallout from Evergrande’s disappearance. , according to the WSJ report.

The report says the central government may still have a limited appetite to bail out the business, despite the global implications. Fears that Evergrande might not be able to pay the interest have grown in recent weeks and were seen as one of the causes of the massive sales around the world last Monday, CNBC said.

For an overview of all of today’s economic events, check out our economic calendar.

This article originally appeared on FX Empire

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