The suspension of Evergrande Group’s trading in Hong Kong adds to China’s property sector woes amid a prolonged debt crisis.
Equity benchmarks in Japan and Hong Kong fell, dragging down a key index of regional shares. Stocks in mainland China were mixed ahead of an extended break for onshore markets, which will close Friday before reopening Oct 9. September has reasserted its tough reputation. It’s shaping up as the worst month for global stocks in a year, while the 10-year Treasury yield has also risen by the most in that period.
“The last 15 years were not normal, we got to a structural low and now we are going to revert to something that is more normal.” Neel Kashkari, Minneapolis Federal Reserve President, said a potential US government shutdown and the effects of the autoworker strike may slow the economy, requiring less aggressive moves from the central bank.