Asian Shares Slide Amid Evergrande Jitters
Asian stocks retreated on Tuesday as inflation worries persisted and Evergrande’s debt troubles sent shockwaves across the region.
There were also concerns that disappointing U.S. jobs data would not suffice to slow the U.S. Federal Reserve’s timeline for tapering its stimulus.
China’s Shanghai Composite Index slumped 44.77 points, or 1.3 percent, to 3,546.94 after some bondholders said they did not receive coupon payments totaling $148 million on Evergrande’s April 2022, April 2023 and April 2024 notes due by 4:00 GMT Tuesday, putting investors at risk of large losses.
With small developers Modern Land and Sinic Holdings also scrambling to delay deadlines, analysts have warned of more defaults ahead if the liquidity problem does not improve markedly.
Hong Kong shares fell sharply after three days of healthy gains. The benchmark Hang Seng plunged 362.50 points, or 1.4 percent, to 24,962.59, dragged down by tech giants.
Japanese shares also snapped a three-day winning streak as tech stocks fell amid fears over higher U.S. interest rates. The Nikkei 225 Index ended down 267.59 points, or 0.9 percent, at 28,230.61, while the broader Topix closed 0.7 percent lower at 1,982.68.
Start-up investor SoftBank Group fell 2.4 percent and Uniqlo operator Fast Retailing gave up 3.3 percent, while Screen Holdings, Fanuc and Advantest lost 1-3 percent. Yaskawa Electric slumped 4.3 percent to extend losses despite an upward revision to its profit outlook on Friday.
Seoul stocks ended lower for a second straight session as foreign and institutional investors offloaded shares amid concerns over inflation sparked by surging prices of oil and other energy resources.
The benchmark Kospi tumbled 39.92 points, or 1.4 percent, to 2,916.38. Market bellwether Samsung Electronics plummeted 3.5 percent and No. 2 chipmaker SK Hynix gave up 2.7 percent.
Australian markets extended declines for the second day running after Westpac Banking Corp. flagged a $956.54 million hit to its second-half profit from one-off charges.
Shares of the country’s second-largest bank dropped 1.7 percent, while the benchmark S&P/ASX 200 index ended down 19.10 points, or 0.3 percent, at 7,280.70. The broader All Ordinaries Index slipped 25.50 points, or 0.3 percent, to finish at 7,575.60.
Casino firms extended losses from the previous session, with Star Entertainment Group tumbling 2.7 percent on fears of tighter regulatory scrutiny in the industry. Biotech CSL advanced 1.8 percent after reaffirming its full-year guidance.
New Zealand shares fell for a sixth day, marking the longest losing streak since May. The benchmark NZX-50 Index edged down 23.11 points, or 0.2 percent, to 12,996.26, dragged down by travel stocks.
U.S. stocks fell overnight as investors fretted over rising prices and signs of slowing growth, with Goldman Sachs cutting its U.S. GDP forecast for the third month in a row.
The Dow and the S&P 500 shed around 0.7 percent, while the tech-heavy Nasdaq Composite fell 0.6 percent.
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