By Laura He, CNN Business
Japan’s Nikkei benchmark slipped as low as 3.5%, taking the drop from recent highs to 10%, which briefly put the market in a correction. He then reduced the losses to 2.5%. Fast Retailing fell 6.6%. Z Holdings, which owns Yahoo Japan, lost 5.8%.
South Korea’s Kospi fell 1.7% and is expected to post its biggest drop in nearly two months.
Hong Kong’s Hang Seng Index fell as much as 1.4% earlier in the morning, with tech and real estate stocks the worst performing. But it reversed the losses and rose 0.3%, as energy stocks surged, offsetting losses in other sectors.
The Hang Seng Technology Index underperformed, down 0.2%. Alibaba fell 1.6% to its lowest level since its initial public offering in Hong Kong two years ago.
Real estate stocks also fell sharply in Hong Kong amid The end of Evergrande’s trade, as contagion fears grow that Evergrande’s debt problems could spread to the entire Chinese real estate sector.
Fantasia Holdings, a Chinese real estate developer, announced Monday evening that it had missed payment on a maturing bond. The company’s shares were halted on Tuesday.
Country Garden Holdings, China’s second-largest developer in terms of sales, lost 2.6%.
Its property management unit – Country Garden Services – fell 2.8% separately, after the company said Fantasia failed to repay a loan to the business and Fantasia was “likely” to default .
Concerns over Evergrande’s debt problems rocked Hong Kong stocks on Monday, after the real estate giant was suspended from operations, pending an announcement of a major transaction. The company has missed at least two bond interest payments in recent weeks.
Overnight, the US market closed sharply lower as investors grappled with concerns about inflation and the debt ceiling. Tech stocks led the losses, with the Nasdaq Composite falling the most among major indexes falling 2.1%. Facebook lost almost 5% following a failure on its platforms. Company services began to return later in the day.
™ & © 2021 Cable News Network, Inc., a WarnerMedia Company. All rights reserved.