Asian shares mixed after Evergrande sale deal called off

Oct 19, 2021, 10:24 PM | Updated: Oct 20, 2021, 9:07 pm
Currency traders watches computer monitors near the screens at a foreign exchange dealing room in S...

Currency traders watches computer monitors near the screens at a foreign exchange dealing room in Seoul, South Korea, Thursday, Oct. 21, 2021. Shares are mixed in Asia after major Chinese property developer Evergrande said a plan to sell its property management arm to a smaller rival had fallen through. (AP Photo/Lee Jin-man)

(AP Photo/Lee Jin-man)

Shares are mixed in Asia after major Chinese property developer Evergrande said a plan to sell its property management arm to a smaller rival had fallen through.

Shares slipped in Hong Kong and Tokyo but rose in most other regional markets.

China Evergrande Group’s shares tumbled nearly 12% while shares in Evergrande Property Services slipped 6.8%. In a notice to the Hong Kong exchange Evergrande said it was having difficulties selling off assets to resolve its cash crunch.

Hopson Development Holdings’ shares rose 5.2% after it said was unable to complete the purchase. Trading of shares in all three companies had been suspended pending a resolution of the transaction.

Hong Kong’s Hang Seng index edged 0.1% lower to 26,110.15 while the Shanghai Composite index gained 0.5% to 3,603.62.

Some “verbal assurances by government officials and loosening of home loans for some of its major banks suggest that the authorities are monitoring the property market risks, hoping to reassure markets of the knock-on impact on the economy,” said Yeap Jun Rong, a market strategist at IG in Singapore.

Japan’s benchmark Nikkei slipped 0.5% in morning trading to 29,121.33, as the world’s third largest economy headed into nationwide elections to select a new prime minister.

The candidate from Japan’s ruling party, Prime Minister Fumio Kishida, has given mixed messages about his policies, and his “new capitalism” measures, which include promises to reduce income disparities. That has done little to reassure markets so far.

Australia’s S&P/ASX 200 gained 0.3% to 7,434.60. South Korea’s Kospi rose 0.2% to 3,019.15.

Bond yields rose. The yield on the 10-year Treasury rose to 1.67% from 1.65% late Wednesday.

The price of Bitcoin slipped to $64,795 after surpassing $66,000 for the first time on Wednesday. The gains came a day after the first exchange-traded fund linked to Bitcoin futures attracted huge interest from investors looking to get into the surging field of cryptocurrencies.

On Wednesday, solid earnings from health care companies helped send stocks higher on Wall Street.

The market has been gaining ground as investors shift their focus to the latest round of corporate earnings. Stocks have been choppy for weeks as rising inflation and lackluster economic data raised concerns about the path ahead for the economic recovery.

The S&P 500 rose 0.4% to 4,536.19, its sixth straight gain. That put it less than a point from an all-time high set on Sept. 2.

The Dow Jones Industrial Average rose 0.4% to 35,609.34. The Nasdaq fell less than 0.1%, to 15,121.68.

“The reason we’re seeing this rally over the last week is that company earnings are looking really good,” said Sylvia Jablonski, chief investment officer at Defiance ETFs. “Most companies are managing inflationary pressures and pricing issues and that’s helping to alleviate concerns about overvaluation and inflation.”

Wall Street cheered solid earnings from a variety of health care companies. Abbott Laboratories, which makes infant formula, medical devices and drugs, rose 3.3% after handily beating analysts’ third-quarter profit forecasts. Health insurer Anthem rose 7.7% after also reporting strong financial results. Technology stocks lagged the broader market.

Netflix fell 2.2% after forecasting earnings for its current quarter that were below analysts’ estimates.

PayPal fell 4.9% following reports that it is considering buying digital pinboard and shopping tool Pinterest, which jumped 12.8%.

Investors are busy reviewing the latest report cards from companies as they try to get a clearer understanding of how rising inflation and the lingering threat from COVID-19 will affect the economy.

A key concern remains supply chain disruptions and rising materials costs cutting into profits for many companies. Higher costs for companies could mean higher prices for consumers, which could threaten spending that is supporting the recovery.

Several large companies are still due to release their earnings this week. American Airlines, Southwest Airlines and Union Pacific will report on Thursday.

In energy trading, benchmark U.S. crude gained 13 cents to $83.55 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, lost 3 cents to $85.79 a barrel.

In currency trading, the U.S. dollar fell to 114.22 Japanese yen from 114.27 yen. The euro cost $1.1665, up from $1.1651.

___

AP Business Writer Damian J. Troise contributed.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

People attending a vigil embrace at LakePoint Community Church in Oxford, Mich., Tuesday, Nov. 30, ...
Associated Press

Student kills 3, wounds 8 at Oxford High School in Michigan

OXFORD TOWNSHIP, Mich. (AP) — A 15-year-old sophomore opened fire at his Michigan high school, killing three students, including a 16-year-old boy who died in a deputy’s patrol car on the way to a hospital, authorities said. Eight other people were wounded, some critically. Oakland County Sheriff Michael Bouchard said investigators were still trying to […]
23 hours ago
A medical worker of Tokyo Medical Center receives a booster shot of the Pfizer COVID-19 vaccine Wed...
Associated Press

Japan starts booster COVID vaccinations amid omicron scare

TOKYO (AP) — Japan on Wednesday started offering coronavirus vaccine booster shots to health care workers amid growing concerns over a new variant of the virus that has already been detected in the country. Japan’s initial vaccination drive kicked off in mid-February and some medical workers who received jabs more than nine months ago are […]
23 hours ago
FILE - Then-California Gov. Jerry Brown talks during an interview in Sacramento, Calif., on Dec. 18...
Associated Press

Trial to determine if requiring women board members is legal

LOS ANGELES (AP) — When then-California Gov. Jerry Brown signed the nation’s first law requiring women on boards of publicly traded companies, he suggested it might not survive legal challenges. Three years later, a judge will begin hearing evidence Wednesday in Los Angeles Superior Court that could undo the law credited with giving more women […]
23 hours ago
Stephen Parlato of Boulder, Colo., holds a sign that reads "Hands Off Roe!!!" outside of the Suprem...
Associated Press

Abortion rights at stake in historic Supreme Court arguments

WASHINGTON (AP) — Abortion rights are on the line at the Supreme Court in historic arguments over the landmark ruling nearly 50 years ago that declared a nationwide right to end a pregnancy. The justices on Wednesday will weigh whether to uphold a Mississippi law that bans abortion after 15 weeks and overrule the 1973 […]
23 hours ago
FILE - Acting Assistant U.S. Attorney General Jeffrey Clark speaks as he stands next to Deputy Atto...
Associated Press

Jan. 6 panel to vote on contempt against former DOJ official

WASHINGTON (AP) — The House panel investigating the Jan. 6 U.S. Capitol insurrection will vote on pursuing contempt charges against a former Justice Department official Wednesday as the committee aggressively seeks to gain answers about the violent attack by former President Donald Trump’s supporters. The vote to pursue contempt charges against Jeffrey Clark, a former […]
23 hours ago
FILE - Shoreline Cleanup Assessment Technique team members, left, evaluate oil coverage as a hand c...
Associated Press

Oil pipeline planned even as California moves away from gas

LOS ANGELES (AP) — A proposal to replace an oil pipeline that was shut down in 2015 after causing California’s worst coastal spill in 25 years is inching though a government review, even as the state moves toward banning gas-powered vehicles and oil drilling. Consideration of the $300 million proposal by Houston-based Plains All American […]
23 hours ago

Sponsored Articles

...
Sanderson Ford

Sanderson Ford offers cars and deals for all this holiday season

Sanderson Ford’s No! Vember Black Friday sale is giving an opportunity to purchase a new 2021 vehicle just in time for the holiday season.
...
PNC Bank

3 cool tips to turn everyday moments into learning experiences for your child

Early brain development has a crucial impact on a child’s ability to learn and succeed in school and life. Research has shown that 90% of a child’s brain is developed by age five.
...
Sweet James

Best fall road trips to take on a motorcycle

Autumn in Arizona brings the beauty of color-changing leaves and a relief from summer heat. It’s one of the most pleasant times to explore the outdoors, especially on a motorcycle.
Asian shares mixed after Evergrande sale deal called off