Japan leaps, rest of Asia down, on China and virus problems | national news
By YURI KAGEYAMA Business Writer AP
TOKYO (AP) – Japan’s benchmark index rose, but other Asian markets were down on Friday amid concerns over struggling Chinese real estate developer Evergrande and the pandemic.
Some Chinese banks have revealed what they are owed by Evergrande, seeking to allay fears of financial turmoil as it grapples with debt of less than $ 310 billion. Lenders say they can face a potential default. Evergrande’s announcement that she was making a payment due on Thursday appeared to allay some concerns.
On Wall Street, stocks broadly rose for a second straight day, reversing the week’s losses. Investors were happy to have obtained from the Federal Reserve the day before that it was not about to raise interest rates.
Japan’s benchmark Nikkei 225 jumped 2.1% to close at 30,248.81 after it reopened from Thursday’s national holiday. South Korea’s Kospi edged down 0.1% to 3,125.02. The Australian S & P / ASX 200 slipped 0.4% to 7,342.60. The Hong Kong Hang Seng lost 0.2% to 24,463.66, while the Shanghai Composite lost nearly 0.6% to 3,622.10.
Mizuho Bank’s Masayuki Tsunashima warned that there were still risks to the markets due to the potential problems of Evergrande. Protracted coronavirus outbreaks also pose risks, he said.
“So one cannot rule out that optimism remains fragile or, at the very least opportunistic, because the underlying risks have simply not been addressed, let alone put to bed,” he said. “And this is consistent with the fact that markets remain subject to volatility and negative shocks.”