HONG KONG, Sept. 28 (Reuters) – Asian stocks fell mostly on Tuesday as investors remained concerned about shares in China Evergrande Group. (3333.HK) unresolved debt crisis and noted the potential impact of a growing energy shortage in China.
The broadest index of MSCI Asia-Pacific stocks outside of Japan (.MIAPJ0000PUS) was 0.13% lower on Tuesday, following a mixed session on Wall Street
The future of Evergrande, the world’s most indebted real estate developer, is under forensic scrutiny by investors after the company missed a deadline last Friday to make an interest payment to foreign bondholders. read more
Evergrande has 30 days to make the payment before it falls into default, and authorities in Shenzen are now investigating the company. wealth management unit.
Without referring to Evergrande, the People’s Bank of China (PBOC) said on Monday in a statement posted on its website that it would “safeguard the legitimate rights of home consumers.”
Meanwhile, growing power shortages in China halted production at a number of factories including Apple Inc providers (AAPL.O) and Tesla Inc (TSLA.O) and they are expected to affect the country’s manufacturing sector and associated supply chains.
Analysts warned that ongoing blackouts could affect the country’s publicly traded industrial stocks.
“What we see in China with developers and blackouts is going to weigh down on Asian markets,” Tai Hui, chief Asian market strategist at JPMorgan Asset Management, told Reuters.
“Most people are trying to calculate the potential contagion effect with Evergrande and how far it could go. We continue to monitor the policy response and have started to see some shift towards supporting home buyers, which is what We were waiting”.
On Wall Street, the Dow Jones Industrial Average (.DJI) rose 144.36 points, or 0.41%, to 34,942.36, the S&P 500 (.SPX) lost 4.57 points, or 0.10%, to 4,450.91 and the Nasdaq Composite (.IXIC) fell. 68.29 points, or 0.45%, up to 14,979.41.
Rising bond yields triggered a growth shift to cyclical stocks in the United States, in a move that analysts hope could become more permanent after a prolonged period of stifled bond yields.
Yields on US Treasuries soared to a three-month high, touching 1.516% overnight after the Federal Reserve move last week to indicate that fiscal stimulus could taper early in the month. November. read more
US investors are looking forward to this week’s speeches from various senior Fed officials, as well as keeping an eye out for any developments in China Evergrande, broker Ord Minnett said in a note.
In Asian trade, the dollar rose nearly 0.1% in line with its performance in Monday’s international session after it rose along with bond yields.
Gold was flat, while Brent crude oil was down 0.2%.
Reporting by Scott Murdoch; Richard Pullin edition
Our Standards: The Thomson Reuters Trust Principles.