Asian Stocks Down, Extends Losses as China Evergrande Debt Deadline Approaches By

Asian Stocks Down, Extends Losses as China Evergrande Debt Deadline Approaches
© Reuters.

By Gina Lee – Asia Pacific stocks were down on Monday morning. Investors in the region continued to sell off shares as concerns about China Evergrande Group’s (HK:) debt situation continues.

Japan’s slid 1.83% by 9:39 PM ET (1:39 AM GMT) as markets re-opened after a holiday. The will hand down its policy decision on Wednesday.

In Australia, the edged down 0.11%, with the releasing the minutes from its latest meeting earlier in the day.

Hong Kong’s fell 0.79%.

Korean and Chinese markets were closed on Tuesday.

Treasuries retained an advance ahead of the , which will also be handed down on Wednesday. Investors will be looking for clues about the central bank’s schedule for asset tapering and interest rate hikes.

Officials including Fed Chairman Jerome Powell, Governor Michelle Bowman and Vice Chairman Richard Clarida will discuss the economic recovery from COVID-19

Across the Atlantic, the will hand down its policy decision on Thursday.

In Asia Pacific, concerns about whether China Evergrande Group will be . The company has an $83.5 million interest payment for its March 2022 bond due on Thursday and a second $47.5 million interest payment due on Sep. 29 for its March 2024 notes.

“Markets are clearly having some angst on the potential spillover effects from Evergrande, along with some nervousness over the September FOMC meeting,” Cornerstone Wealth chief investment officer Cliff Hodge told Bloomberg.

“We’ve been in the camp that we’re overdue for a correction, something in the 5%-10% range that is a buyable pullback. At the moment, we’re not worried about a market crash. The Fed and Evergrande are not new.”

The Chinese property sector is one of several facing tightened restrictions as part of President Xi Jinping’s “common prosperity” initiative. It comes amid fresh COVID-19 outbreaks in the country denting the economic recovery and the prospect of reduced policy support from the People’s Bank of China.

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