Stocks Were Mixed as Investors Analyzed Evergrande’s Issues
Stocks in Asia-Pacific were mixed on September 24, as investors continued to analyze China Evergrande Group’s problems.
In Japan, the Nikkei 225 gained 2.06% to end its trading day at 30,248.31 with shares of East Retailing and Softbank Group advancing 1.51 and 2.76% respectively. The Topix index added 2.31% to 2,090.75.
On the other hand, South Korea’s Kospi closed slightly lower at 3,125.24.
In Hong Kong, the Hang Seng index fell 1.45% to finish its trading day at 23,155.49.
Hong Kong-listed shares of China Evergrande Group dropped 11.61%. Authorities in China are trying to mitigate China Evergrande Group’s problems. They told local officials to prepare for the potential demise of the Evergrande. The country’s one of the major property developers is the most indebted property developer in the world. It is not surprising that authorities are trying to prepare for the worst-case scenario.
The company also has not said whether it will fulfill its interest payments on its U.S.-dollar bond. Several weeks ago, the company stated that it could default on its debt. It is trying to sell some assets to improve the situation. The company said its property sales will likely continue to drop significantly this month, resulting in a further deterioration of its cash situation.
Mainland Chinese stocks
Mainland Chinese stocks suffered losses on September 24. The Shanghai Composite dropped 0.8% to close at 3,163.07. The Shenzhen component fell 0.205% to around 14,357.85,
In Australia, the S&P/ASX 200 dropped 0.37% to close at 7,342.60.
U.S. stocks on Thursday. The Dow Jones Industrial Average gained 506.50 points to 34,764.82. The S&P 500 added 1.21% to 4,448.98. The Nasdaq Composite rose 1.04% to 15,052.24.
Thursday’s gains helped the major averages on Wall Street to stay in positive territory for the week, recovering from earlier losses.
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