Global markets have faced sell-offs caused by problems in China Evergrande as risks increase that the real estate giant may default on its huge debt, prompting investors to shy away from riskier assets.
Asian markets had one idea lower volumes, diluted by public holidays in China, Taiwan and South Korea. Hang Seng recovered from the early decline, and traded almost unchanged as financial and real estate companies bounced, while Japan’s Nikkei returned from a market vacation with a decline of almost 2%.
Oil prices also recovered slightly in Asia after falling the previous day. US crude futures traded at $ 70.90 a barrel.
Shaking cryptocurrencies also bottomed out, with bitcoin reaching $ 40,193.
US stocks started the week deep in the red as investors continued to be at risk off in September amid several emerging market risks.
The S&P 500 fell 1.7%, with each sector recording losses, posting its worst daily performance since May 12. The Dow Jones lost 614 points, or 1.8 percent, for its biggest one-day decline since July 19. The index of 30 stocks collapsed by 971 points. The technology Nasdaq Composite fell 2.2%.
The Federal Reserve kicked off a two-day meeting on Tuesday, and investors are worried that the central bank will signal that it is ready to begin withdrawing monetary stimulus amid rising inflation and improving labor markets.
Covid cases due to the delta option remain at January levels as colder weather approaches in North America.
Junior Trader Nikolay Petrov