Asia Pacific markets try to navigate out of Evergrande blues

Highlights

  • Australia is today’s best performer in the region with 0.94% gain.
  • Shares of Evergrande’s EV arm tanked in Hong Kong.
  • APAC markets are in the green.

The equity markets in the Asia Pacific region started the week on a positive note, as investors tried to take in stride fears surrounding the Evergrande fiasco.

Even as shares of China Evergrande New Energy Vehicle Group in Hong Kong plunged around 15% following the firm’s Friday warning that it was in a “serious shortage of funds”, the group company shares were trading almost 4% up.

The spike in Evergrande shares came even as the embattled Chinese developer continued to stay silent on its US$83 million-dollar bond interest payment that was due last Thursday.

In the broader market, the Hang Seng Index was up 0.92% in morning trade.

In mainland China, the Shanghai Composite was hovering near the flatline – down 0.06%. On the other hand, the Shenzhen Component rose 0.38%.

In Japan, the benchmark Nikkei 225 was up 0.35%, while the Topix index surged 0.39% over its Friday’s close.

Down Under, in Australia, the benchmark – ASX200 – was up 0.94% -- putting up the best show in the region.

Looking ahead, the Chinese industrial profits data for August is expected to be released on Tuesday.

Elsewhere, early projections on Sunday pointed to a knife-edge result in Germany federal elections as the country looks for a successor to Angela Merkel, who is preparing to leave office after 16 years in power.

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