Evergrande tries to placate bears ahead of PBOC, Fed
Asian equities consolidate recent losses, mostly heavy though.
Japan begins the week with over 1.5% losses, Australia prints mild gains.
RBNZ’s Hawksby stays cautiously optimistic but RBNZ rate hike in jitters.
PBOC’s move to defend Chinese money flow from Evergrande shock, Fed tapering in focus.
Asia-Pacific shares dwindle during early Tuesday as markets overcome the Evergrande saga amid the second day of the bank holiday in China. The consolidation could also be linked to the comments from Aussie and New Zealand central bankers, as well as from the Chair of the Chinese troubled real-estate firm.
That said, MSCI’s index of Asia-Pacific shares outside Japan drops 0.28% intraday while Japan kick-starts the key week, after Monday’s holiday, with 1.8% intraday losses by the press time.
Australia’s ASX 200 prints mild gains as the Reserve Bank of Australia (RBA) monetary policy meeting minutes reject rate hike concerns, also highlighting the virus woes. On the other hand, Reserve Bank of New Zealand (RBNZ) Assistant Governor Christian Hawksby defends the central bank’s hawkish bias, resulting in mild losses of NZX 50 by the press time.
The chairman of troubled China Evergrande Group, Hui Ka Yan, tried to defend the bulls while saying, per Reuters, “Confident the company will ‘walk out of darkest moment’.” The same highlights the Chinese government’s action to save the real-estate player, which in turn highlights Wednesday’s People’s Bank of China (PBOC) monetary policy meeting.
Elsewhere, traders in Indonesia and India both follow the sluggish tone of the markets with smaller losses amid cautious mood ahead of tomorrow’s US Federal Reserve (Fed) monetary policy decision.
On a broader front, US stimulus and debt limit chatters, as well as updates concerning the United Nations (UN) meet, also underpin the recent rebound in risk appetite.
Amid these plays, S&P 500 Futures rise 0.30% intraday gains while the US 10-year Treasury yields consolidate the latest losses around 1.31% by the press time. It’s worth observing that the US Dollar Index (DXY) prints 0.07% intraday loss while easing to 93.20, from a monthly high.
Moving on, investors will keep their eyes on any updates concerning Evergrande and covid while the Fed and PBOC are set to rock the markets tomorrow.
Read: Can the Fed disrupt stock market gains, and why China’s evergrande is causing wobbles elsewhere