The Chinese property sector is experiencing greater turmoil as trading in shares of China Evergrande was suspended in Hong Kong due to the chairman being placed under police watch. This development has negatively impacted sentiment, leading to a 1.35% decline in the Hong Kong market. Furthermore, China’s upcoming Golden Week holiday, which includes the Mid-Autumn Festival and National Day breaks, could see approximately 800 million travel trips being made, potentially affecting market conditions. In other markets, Japan experienced a 1.54% decrease while India and Australia declined by 0.35% and 0.08%, respectively.
Meanwhile, the US stock market ended mixed in the previous session, with the Nasdaq Composite registering a 0.22% increase, the S&P 500 remaining relatively unchanged, and the Dow retreating by 0.20%. Investors are now looking forward to speeches from US Federal Reserve Chair Jerome Powell and other central bank officials. Additionally, oil prices have reached one-year highs due to tightening supplies, while the 10-year US yield has reached its highest levels since 2007, indicating expectations of higher interest rates. Gold prices have stabilized as markets brace for US economic data.
Overall, the Chinese property sector’s troubles, along with market volatility in Japan, India, and Australia, have contributed to a cautious atmosphere among investors, who are also closely monitoring developments in the US stock market, oil prices, and gold prices.