Mixed Asian markets; Evergrande shares in China suspended

Asian markets were mixed on Monday, with Shanghai closed for National Day.

Hong Kong’s benchmark fell more than 2% after shares in struggling real estate developer China Evergrande were suspended.

The company didn’t say why, but a Chinese financial information service, Cailian, said another major developer was planning to buy Evergrande’s property management unit.

Evergrande is struggling to make payments on tens of billions of dollars in debt as it suffers a cash crunch brought on by the Chinese government’s tightening restrictions on debt financing.

The Hang Seng fell 2.3% to 24,011.72 while Tokyo’s Nikkei 225 fell 1.1% to 28,457.15. Shares also fell in Taiwan. The Australian S & P / ASX 200 climbed 0.8% to 7,246.10.

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Markets were closed for the holidays in Shanghai and South Korea.

Crude prices edged down ahead of a meeting of major oil producers. There was no sign that a pipeline spill off the California coast had an impact on prices.

An estimated 126,000 gallons (572,807 liters) of heavy crude may have leaked from an undersea pipeline off Orange County. At the end of Sunday, the leak was reported as plugged.

The environmental impact was likely to be far worse than any effect on the overall oil supply. The amount disclosed was around 3,000 barrels, while the United States produces more than 18 million barrels of crude oil per day.

US benchmark crude oil fell 21 cents to $ 75.67 per barrel in electronic trading on the New York Mercantile Exchange. It gained 85 cents to $ 75.88 a barrel on Friday.

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Brent crude, the international standard for pricing, fell 16 cents to $ 79.12 a barrel.

Oil prices have hovered to three-year highs after Hurricane Ida hit a critical port that serves as the primary center of support for the deepwater oil and gas industry in the Gulf of Mexico in the United States, worsening the supply situation, at least temporarily.

OPEC and other major oil producers were stung by deep production cuts in 2020 at the height of the pandemic and have been slowly ramping up production.

OPEC Plus members scheduled to meet on Monday may consider increasing production levels to meet growing demand, Mizuho Bank said in a comment.

Wall Street rebounded on Friday, led by the companies that would benefit most from a healthier economy. The S&P 500 gained 1.1% to 4,357.04. But US markets still had their worst week since the winter.

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The Dow Jones Industrial Average climbed 1.4% to 34,326.46. The Nasdaq composite gained 0.8% to 14,566.70.

Merck & Co. jumped 8.4% after saying its experimental pill to treat COVID-19 halved hospitalizations and deaths. The prospects of an additional tool to tame the pandemic have helped increase the shares of airlines, hotels and businesses affected by restrictions on travel and other activities.

The S&P 500 still fell to a weekly loss of 2.2%, its worst since February. A rapid rise in interest rates earlier this week rocked the market and forced a revaluation over whether stocks had gotten too expensive.

The 10-year Treasury yield was stable Monday at 1.47%.

September was also the worst month for the S&P 500 since March 2020, when markets plunged as COVID-19 closures took hold.

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Among the worries that have weighed on the market: The Federal Reserve is about to let go of the accelerator on its support to the markets, economic data has recently been mixed following a resumption in COVID-19 infections, rates of Corporate taxes could rise and political unrest continues in Washington.

In currency trading, the dollar rose to 111.06 Japanese yen from 110.96 yen on Friday night. The euro slipped to $ 1.1591 from $ 1.1600.

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