Sunday, December 5, 2021

Asian Stocks Disperse After Evergrande Sale Canceled

Stocks in Asia have varied after major Chinese real estate developer Evergrande said plans to sell its property management division to a smaller competitor had failed.

Stocks fell in Hong Kong, Seoul and Tokyo, while they rose in Australia and Shanghai.

China Evergrande Group shares fell 12.5% ​​and Evergrande Property Services fell 8%. In a notice to the Hong Kong Stock Exchange, Evergrande said it was having difficulty selling assets to address its cash flow problem.

Hopson Development Holdings rose 12.4% after the company said it could not complete its purchase. Trading in the shares of all three companies was suspended pending completion of the deal.

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

Some “oral assurances from government officials and the easing of home loans for some of the big banks suggest that the authorities are monitoring the risks of the property market in hopes of convincing the markets of the negative impact on the economy,” said Yeap Jun Rong, IG market strategist in Singapore.

Japan’s benchmark Nikkei fell 1.9% to 28,708.58 as the world’s third-largest economy approaches national elections to elect a new prime minister.

Japan’s ruling party candidate, Prime Minister Fumio Kishida, has given mixed messages about his policies and his “new capitalism” measures, which include promises to reduce income inequality. So far, this has done little to calm the markets.

Australia’s S & P / ASX 200 was largely unchanged, climbing less than 0.1% to 7,415.40. South Korea’s Kospi fell 0.2% to 3,007.33.

The yield on 10-year Treasury bonds rose 1.65%.

Bitcoin price dropped to $ 65,355 after surpassing $ 66,000 for the first time on Wednesday. The profit came a day after the first exchange-traded fund linked to bitcoin futures generated huge interest from investors looking to get into the burgeoning cryptocurrency field.

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Solid profits from medical companies boosted Wall Street stocks on Wednesday.

The market picks up steam as investors turn their attention to the latest round of corporate earnings. Equities have been volatile for several weeks as surging inflation and weak economic data raised fears about the future path of economic recovery.

The S&P 500 gained 0.4% to hit 4,536.19, its sixth straight gain. Thus, it turned out to be less than one point from the 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 has welcomed the solid revenues of dozens of healthcare companies. Abbott Laboratories, which makes infant formula, medical devices and drugs, rose 3.3% after easily beating analysts’ forecasts for third-quarter earnings. Insurance company Anthem rose 7.7% after also reporting strong financial results. Tech stocks lagged behind the broader market.

Investors are busy scrutinizing the latest report cards from companies in an effort to gain a clearer picture of how rising inflation and the continued threat of COVID-19 will impact the economy.

Supply chain disruptions and rising material costs continue to be a key concern, dampening profits for many companies. Higher costs for companies could mean higher prices for consumers, which could jeopardize the costs that support recovery.

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

In energy trading, US benchmark 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 foreign exchange trading, the US dollar fell to 114.08 Japanese yen from 114.27 yen. The euro fell to $ 1.1643 from $ 1.1651.

Nation World News Desk
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