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Mixed trend in Asian markets; China Evergrande shares suspended


Asian markets are mixed after shares of troubled property developer China Evergrande were suspended from trading, with Hong Kong benchmarks down more than 2%

Hong Kong benchmarks fell more than 2% in Asian markets on Monday after shares of troubled property developer China Evergrande were suspended from trading.

China Evergrande did not say why it stopped trading its shares, but Calian, a Chinese financial news service, said another major developer was planning to buy Evergrande’s asset management unit.

Evergrande is struggling to pay off more than $300 billion in debt as it ends a cash crunch caused by the tightening of Chinese government restrictions on debt-leveraged financing.

The Hang Seng fell 2.5% to 23,96.25 while Tokyo’s Nikkei 225 fell 1.1% to 28,444.89. Taiwan shares fell 1%.

Australia’s S&P/ASX 200 rose 1.3% to 7,246.10. On Friday, its government outlined plans to lift a pandemic ban on its vaccinated citizens traveling abroad from November, although it has yet to reopen to international travelers.

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

Crude oil prices fell slightly ahead of the meeting of major oil producers. There was no indication that a leak from a pipeline off the California coast was affecting prices.

An estimated 126,000 gallons (572,807 litres) of heavy crude is believed to have leaked from an underwater pipeline from Orange County. The leak was reported to have stopped by late Sunday evening.

The environmental impact was likely to be much worse than any impact on the overall oil supply. The leaked amount was about 3,000 barrels, while the US produces more than 18 million barrels of crude a day.

US benchmark crude oil fell 30 cents to $75.49 a barrel in electronic trading on the New York Mercantile Exchange. It rose 85 cents to $75.88 a barrel on Friday.

Brent crude, the international standard for pricing, fell 38 cents to $78.90 a barrel.

Oil prices are hovering near 3-year highs after Hurricane Ida slammed into a vital port that serves as the primary support center for the Gulf of Mexico deepwater offshore oil and gas industry in the US, thereby worsening the supply situation, at least temporarily.

OPEC and other major oil producers were stunned by deep production cuts in 2020 during the depths of the pandemic and are gradually ramping up production.

Mizuho Bank said in a commentary that OPEC Plus members, due to meet on Monday, may consider raising production levels to meet rising demand.

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

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

Merck & Co jumped 8.4% when it said its experimental pill to treat COVID-19 halved hospitalizations and deaths. The prospects of an additional tool for overcoming the pandemic helped lift stocks of airlines, hotels and companies hurt by restrictions on travel and other activities.

The S&P 500 still fell in a weekly loss of 2.2%, its worst since February. A sharp rise in interest rates earlier this week shook the market and forced a re-evaluation of whether stocks had become too expensive.

The yield on the 10-year Treasury was steady at 1.47% on Monday.

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

Amid weighted concerns on the market: The Federal Reserve is close to shutting down the accelerator on its support for markets, mixed economic data after recent spurt in COVID-19 infections, could increase corporate tax rates And the political turmoil continues in Washington.

In currency trading, the dollar rose from 110.96 yen to 111.03 Japanese yen late Friday. The euro rose from $1.1600 to $1.1605.

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