October 20, 2021
Markets

GLOBAL MARKETS-Asian shares slip as Evergrande, inflation worries sap positive mood

By Hideyuki Sano

TOKYO, Oct 4 (Reuters) – Asian shares dipped on Monday as concerns about China’s property sector and inflation worries offset upbeat U.S. data and positive news on new drugs to fight the coronavirus.

Trading in shares of debt-laden China Evergrande was suspended after it missed a key interest payment on its offshore debt obligation for the second time last week.

“The biggest problem is not a default by Evergrande but the environment that has led to its downfall. Authorities are regulating housing loans and lending to property firms. Markets are looking for a next Evergrande already,” said Kazutaka Kubo, senior economist at Okasan Securities.

“There is rising risk Evergrande’s woes will spread to the entire Chinese property sector.”

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.3%. The index marked its first quarterly fall in six quarters.

Hong Kong led…

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