Mixed response on stock markets as Evergrande sale plans fall through

world
Mixed Response On Stock Markets As Evergrande Sale Plans Fall Through Mixed Response On Stock Markets As Evergrande Sale Plans Fall Through
Shares price board in South Korea, © AP/Press Association Images
Share this article

By Yuri Kageyama, Associated Press

Shares are mixed in Asia after major Chinese property developer Evergrande said a plan to sell its property management arm to a smaller rival had fallen through.

Shares slipped in Hong Kong, Seoul and Tokyo, while they rose in Australia and Shanghai.

China Evergrande Group’s shares tumbled 12.5% while shares in Evergrande Property Services slipped 8%. In a notice to the Hong Kong exchange Evergrande said it was having difficulties selling off assets to resolve its cash crunch.

Hopson Development Holdings’ shares rose 12.4% after it said was unable to complete the purchase. Trading of shares in all three companies was suspended pending a resolution of the transaction.


Giant Chinese developer Evergrande hoped to sell its property management arm to a smaller rival but the plan has collapsed (AP Photo/Andy Wong)

Advertisement

Hong Kong’s Hang Seng index lost 0.6% lower to 25,990.32 while the Shanghai Composite index gained 0.2% to 3,594.78.

Some “verbal assurances by government officials and loosening of home loans for some of its major banks suggest that the authorities are monitoring the property market risks, hoping to reassure markets of the knock-on impact on the economy,” said Yeap Jun Rong, a market strategist at IG in Singapore.

Japan’s benchmark Nikkei slipped 1.9% to finish at 28,708.58, as the world’s third largest economy headed into nationwide elections to select a new prime minister.

The candidate from Japan’s ruling party, Prime Minister Fumio Kishida, has given mixed messages about his policies, and his “new capitalism” measures, which include promises to reduce income disparities. That has done little to reassure markets so far.

Australia’s S&P/ASX 200 was little changed, inching up less than 0.1% to 7,415.40. South Korea’s Kospi fell 0.2% to 3,007.33.

The yield on the 10-year Treasury rose was steady at 1.65%.


Solid earnings from health care companies helped send stocks higher on Wall Street (AP Photo/John Minchillo)

The price of Bitcoin slipped to $65,355 after surpassing $66,000 for the first time on Wednesday. The gains came a day after the first exchange-traded fund linked to Bitcoin futures attracted huge interest from investors looking to get into the surging field of cryptocurrencies.

Advertisement

On Wednesday, solid earnings from health care companies helped send stocks higher on Wall Street.

The market has been gaining ground as investors shift their focus to the latest round of corporate earnings. Stocks have been choppy for weeks as rising inflation and lacklustre economic data raised concerns about the path ahead for the economic recovery.

The S&P 500 rose 0.4% to 4,536.19, its sixth straight gain. That put it less than a point from an all-time high set on September 2.

The Dow Jones Industrial Average rose 0.4% to 35,609.34. The Nasdaq fell less than 0.1%, to 15,121.68.

Wall Street cheered solid earnings from a variety of health care companies. Abbott Laboratories, which makes infant formula, medical devices and drugs, rose 3.3% after handily beating analysts’ third-quarter profit forecasts. Health insurer Anthem rose 7.7% after also reporting strong financial results. Technology stocks lagged the broader market.

Investors are busy reviewing the latest report cards from companies as they try to get a clearer understanding of how rising inflation and the lingering threat from Covid-19 will affect the economy.

A key concern remains supply chain disruptions and rising materials costs cutting into profits for many companies. Higher costs for companies could mean higher prices for consumers, which could threaten spending that is supporting the recovery.

Advertisement

Several large companies are still due to release their earnings this week. American Airlines, Southwest Airlines and Union Pacific will report on Thursday.

In energy trading, benchmark US crude lost 35 cents to $83.07 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, lost 63 cents to $85.19 a barrel.

In currency trading, the US dollar fell to 114.08 Japanese yen from 114.27 yen. The euro slipped to $1.1643 from $1.1651.

Read More

Want us to email you top stories each lunch time?

Download our Apps
© BreakingNews.ie 2021, developed by Square1 and powered by PublisherPlus.com