Tue, 26 Oct 2021

SYDNEY, NSW, Australia - Chinese, South Korean, and Japanese stock markets were closed on Monday with their respective countries enjoying a public holiday.

It was a good thing for investors and traders as those left holding the fort faced a barrage of selling.

The main focus Monday was the continued troubles of embattled Hong Kong-listed property developer China Evergrande which has $305 billion worth of debt requiring repayment in the days and weeks ahead.

The company announced on Sunday some of its loan book has been repaid, not in cash but by property.

The yield on its 2022 bonds has skyrocketed to 500 percent per annum.

The imminent collapse of the real estate giant has the Hong Kong Stock Exchange reeling. On Monday the coveted Hang Seng index tumbled 821.62 points or 3.30 percent t, to close at 24,099.14.

"It's part of a correction which was due to some degree, and partly reflects prevailing uncertainties about the growth outlook," Shane Oliver, head of investment strategy at AMP Capital told Thomson Reuters Monday.

"And then, of course, that's continued in the Asia time zone with the concerns about Evergrande in China adding to that weakness."

Stocks traded in Australia too on Monday but traders there caught the contagion, sending the markets plummeting.

The Australian All Ordinaries shed 143.20 points or 1.86 percent to 7,559.20.

The U.S. dollar jumped on the volatility. The euro fell to 1.1716 by the Sydney close Monday. The British pound weakened to 1.3706. The Japanese yen was slightly firmer at 109.83. The Swiss franc slipped to 0.9320.

The Canadian was weaker at 1.2801. The Australian dollar dropped to 0.7237. The New Zealand dollar weakened to 0.7024.

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