Asian Stocks Dip Amid Evergrande, Inflation Concerns

Asian stocks dipped as the suspension of shares from China’s debt-laden Evergrande and inflation concerns dampened investor sentiment.

The Hang Seng Index in Hong Kong tumbled by 2.24 percent on its Oct. 3 close, while MSCI’s index of Asia-Pacific shares saw its first quarterly fall in six quarters with a 0.3 percent drop.

Japan’s Nikkei closed with a 1.13 percent decline and the Topix index slipped by 0.62 percent.

Slips in Asian stocks followed after the Hong Kong exchange suspended China’s property giant Evergrande from trading shares after it missed two bond payments from foreign lenders last week.

Investors are also watching out for a dollar note guaranteed by Evergrande from an entity called Jumbo Fortune Enterprises worth $260 million, which would immediately constitute a default should the company miss its effective deadline on Oct. 4.

The embattled company, with a total of almost $300 billion in debt, has $20 billion worth of offshore liabilities.

Meanwhile, investors have been awry over supply disruptions and energy price hikes accelerating global inflation, with most believing that skyrocketing prices will persist for longer.

Surging inflation in the United States is offsetting the increase in consumer spending, while inflation in the euro zone hit a 13-month high in September at 3.4 percent.


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