Asian stocks sink amid rate hike jitters, China property market woes
Investing.com-- Most Asian stocks drifted lower on Thursday, extending recent declines amid persistent fears of higher U.S. interest rates, while Chinese stocks fell on renewed concerns over the country’s beleaguered property market.
Japan’s Nikkei 225 was the worst performer in Asia, losing 0.8% as rising Treasury yields pressured heavyweight technology stocks. Uncertainty before a key inflation reading on Friday also kept sentiment towards Japan under pressure.
Asian markets took a weak lead-in from Wall Street, as U.S. indexes saw an extended rout on concerns that the Federal Reserve will raise interest rates further this year. The Fed also recently signaled that it will keep rates higher for longer.
China’s Shanghai Shenzhen CSI 300 fell 0.3%, while the Shanghai Composite index was flat. Hong Kong’s Hang Seng shed 0.7%, with property stocks leading losses after trading in shares of embattled developer China Evergrande (HK:3333) was suspended.
Media reports said this week that Evergrande’s founder and chairman Hui Ka Yan had been placed under police watch. The reports came shortly after the firm said one of its Chinese units was under investigation.
The news ramped up concerns more government scrutiny towards China’s property market, which is already reeling from an extended cash crunch and potential bankruptcies in its biggest players. The sector accounts for roughly a quarter of China’s economic growth.
Evergrande’s suspension dampened sentiment towards Chinese markets before the week-long Autumn festival holiday. Still, the holiday is expected to offer some support to the Chinese economy from increased consumer spending.
Markets were also awaiting purchasing managers’ index data from China, due over the
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